Private health insurance company Niva Bupa is going to open its IPO for public subscription on Thursday (7 November 2024) next week. Interested investors can bid for it till 11 November 2024. The company has filed a red herring prospectus with the Registrar of Companies. Niva Bupa intends to raise Rs 2,200 crore through this issue. This IPO includes new shares worth Rs 800 crore and an offer-for-sale worth Rs 1,400 crore. Anchor booking for this issue will open on 6 November 2024.

These promoters will sell shares

through OFS Bupa Singapore Holdings Pvt. Ltd. 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 per cent stake in the company, which includes 62.19 per cent stake of Bupa Singapore Holdings Private Limited and 26.80 per cent stake of Fetal Tone LLP. Apart from this, India Business Excellence Fund IV is the largest shareholder with 2.81 per cent stake. It is followed by V-Sciences Investments PTE (2.60 per cent), SBI Life Insurance Company (1.3 per cent) and A91 Emerging Fund II LLP (1.03 per cent). Will the price band be known on Monday? The price band has not been announced by the company yet. However, the announcement can be made by Monday. The anchor book for institutional investors will be opened on November 6. The company will use Rs 800 crore from the proceeds to increase its capital base. Allotment and Listing The company can complete the allotment process by November 12, 2024. After this, the shares are expected to be deposited in the demat accounts of successful investors by November 13, 2024. The company's shares can start trading on BSE and NSE from November 14, 2024. After listing, it will be the fourth health insurance company available for trading in the stock markets after Star Health and Allied Insurance, ICICI Lombard General Insurance and The New India Assurance Company. Book Running Lead Managers and Registrars The book running lead managers handling the issue include ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank and Motilal Oswal Investment Advisors. KFin Technologies is the registrar of this offer. Niva Bupa Health Insurance is one of the largest standalone health insurance companies (SAHI) in India based on the overall health gross direct premium income (GDPI) of Rs 5,494.43 crore in FY 2024. The company has reported a net profit of Rs 81.85 crore in FY 2024, which is much higher than Rs 12.5 crore in the previous financial year. However, the operating profit declined from Rs 350.9 crore to Rs 188 crore during the same period. In the first quarter of the current financial year, the company has reported a loss of Rs 18.8 crore, which is less than the loss of Rs 72.2 crore in the same period a year ago. However, its operating profit stood at Rs 23.2 crore during this period as against an operating loss of Rs 13.4 crore. Based on Retail Health GDPI, its market share in the Indian SAHI market was 17.29% in the current FY 2025, whereas it was 16.24% in the previous FY 2024.