Niva Bupa’s IPO to open on Thursday, price band fixed at Rs 70-Rs 74

MUMBAI: Niva Bupa Health Insurance Company on Monday said it has fixed the price band of Rs 70-Rs 74 per equity share of face value Rs 10 each for its maiden initial public offer (IPO).

The IPO will open on Thursday for subscription and close on Monday. Investors can bid for a minimum of 200 equity shares, and in multiples of 200 equity shares thereafter, said the health insurer.

The IPO is a mix of fresh issue of up to Rs 800 crore and an offer of sale (OFS) up to Rs 1,400 crore by Bupa Singapore Holdings Pte. Ltd., Fettle Tone LLP.

According to Niva Bupa, the proceeds from its fresh issuance will be utilised to the extent of Rs 1,500 crore for augmentation of capital base to maintain and strengthen solvency levels and general corporate purposes.

The offer is being made through the book-building process, wherein not less than 75 per cent of the net offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15 per cent of the offer shall be available for allocation to non-institutional bidders, and not more than 10 per cent of the offer shall be available for allocation to retail individual bidders.

It is the country’s third largest and second fastest-growing standalone health insurance company (SAHI) based on overall health GDPI of Rs 54.94 billion in fiscal 2024, which grew at a CAGR of 41.37 per cent from fiscal 2022 to 2024, almost double of the industry’s average.

As of June 30, Niva Bupa insured 14.99 million lives. According to Redseer, Niva Bupa's market share in the Indian SAHI market was 16.24 per cent for Fiscal 2024, based on retail health GDPI and for the five months ended August 31, stood at 17.29 per cent.