Private health insurance company Niva Bupa Health has fixed a price band of ₹ 70 - ₹ 74 per share for its IPO. It will open for subscription on Thursday (7 November 2024) this week. Interested investors can bid for it till 11 November 2024. Through this IPO, the insurance company is looking to raise ₹ 2,200 crore. Niva Bupa Health's IPO consists of new shares worth ₹ 800 crore and an offer-for-sale worth ₹ 1,400 crore. Anchor booking for this issue will open on 6 November 2024.

These promoters will sell their stake
through OFS Bupa Singapore Holdings will sell shares worth Rs 350 crore while Fetal Tone LLP, owned by global private equity firm True North, will sell shares worth Rs 1,050 crore. The promoters hold 89.07% stake in the company, which includes 62.19% stake of Bupa Singapore Holdings Private Limited and 26.80% stake of Fetal Tone LLP.

Apart from this, India Business Excellence Fund IV is the largest shareholder with 2.81% stake. It is followed by V-Sciences Investments PTE (2.60%), SBI Life Insurance Company (1.3%) and A91 Emerging Fund II LLP (1.03%).

Use of funds
The company will use Rs 800 crore from the proceeds received through the IPO to increase its capital base. Allotment and listing The company can finalize the allotment of shares by November 12, 2024. While the shares are expected to be deposited in the demat accounts of successful investors by 13 November 2024. The company's shares can start trading on BSE and NSE from 14 November 2024. Book Running Lead Managers and Registrars ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank and Motilal Oswal Investment Advisors will be the book running lead managers of this IPO. While KFin Technologies is the registrar of this offer. Company's Finance Niva Bupa Health Insurance is one of the largest standalone health insurance companies (SAHI) in India based on overall health gross direct premium income (GDPI) of ₹ 5,494.43 crore in the financial year 2024. The company has reported a net profit of ₹ 81.85 crore in the financial year 2024, which is much higher than ₹ 12.5 crore in the previous financial year. However, operating profit declined from ₹350.9 crore to ₹188 crore during the same period. In the first quarter of the current financial year, the company has reported a loss of ₹18.8 crore, which is less than the loss of ₹72.2 crore in the same period a year ago. However, its operating profit stood at ₹23.2 crore as against an operating loss of ₹13.4 crore in this period. Based on Retail Health GDPI, its market share in the Indian SAHI market in the current financial year 2025 was 17.29%, while in the previous financial year 2024 it was 16.24%.