Niva Bupa Gets SEBI Approval for Rs 3,000 Crore IPO

By siliconindia  |  Monday, 21 October 2024, 03:59:33 PM IST

Niva Bupa Gets SEBI Approval for Rs 3,000 Crore IPO
Niva Bupa Health Insurance has received the final approval from SEBI to raise Rs 3,000 crore in its maiden IPO. The issue will consist of a fresh issue of Rs 800 crore and an offer for sale of Rs 2,200 crore that will include Rs 320 crore sold by Bupa Singapore Holdings and Rs 1,880 crore sold by Fettle Tone-a privately held firm that houses major equity from private equity firm True North.
Health insurer Max Bupa had filed its IPO papers with SEBI on 29 June. Proceeds from the fresh issue, pegged at Rs 625 crore, will be deployed to enhance the group's capital base, boost solvency, and meet general corporate purposes.
Niva Bupa reported a gross direct written premium of Rs 5,499.43 crore in fiscal 2024. According to the market research firm Redseer, the company had a market share of 16.24% in the standalone health insurer category in India during the same fiscal year. That placed it eventually as the third biggest standalone health insurer in the country and the second fastest growing one.
From fiscal 2022 to 2024, the gross written premium for Niva Bupa grew at a compound annual growth rate of 41.27%, whereas its retail health gross written premium was up at a CAGR of 33.41%.
Niva Bupa has embraced the 'digital-first' strategy and will be embedding technologies into all aspects of customer experience-from onboarding to underwriting and claims processing and renewals. This is coupled with strong market presence, making the company a great bet for sustained growth as it looks to raise capital through its IPO slated for later this year.

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