Niva Bupa IPO Receives 1.5 Times Subscription; Closes Today
The IPO consists of fresh issues of up to Rs 800 crore and an offer for sale (OFS) of upto 1,400 crore by existing shareholders and promoters
Niva Bupa, a health insurer platform backed by True North is scheduled to closed for public subscription for its Rs 2,200 crore initial public offering (IPO)
During its subscription phase, the issue garnered a total subscription of 1.36 times on its third and last day at the time of filing this report. Retail category was filled nearly 2 times subscription, while qualified institutions category stood with 1.59 times subscription.
The IPO consisted of fresh issues of up to Rs 800 crore and an offer for sale (OFS) of upto 1,400 crore by existing shareholders and promoters. The price band for the IPO was fixed at Rs 70 to 74 per equity share.
ICICI Securities, Morgan Stanley India, Kotak Investment Capital, Axis Capital, Motilal Oswal and HDFC Bank are the book running lead managers to the offer, while Kfin Technologies is the registrar to the issue.
Niva Bupa intended to utilise the net proceeds towards augment capital base to strengthen solvency levels.
Besides, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.
As of 31 March 2024, the gross written premium (GWP) stood at Rs 5,607.57 crore, up from Rs 4,073.03 crore the previous year, with 14.73 million active insured lives.
Notably, the growth rate of its GWP was 41.27 per cent CAGR between Fiscal 2022 and 2024. By 31 March 2024, there were 10,460 network hospitals, up from 8,562 on that day in 2022.
The amount of premium earned for FY24 was Rs 3,811.25 crore, up from Rs 2,662.75 crore the previous year. The total income for the fiscal year was Rs 4,118.63 crore. The year's net profit was Rs 81.85 crore as compared to Rs 1.25 crore in the previous year.
