Niva Bupa Health Insurance (Previsously Known As Max Bupa Health Insurance) IPO: Complete Details and Analysis

All you need to know about Niva Bupa Health Insurance Company's upcoming ₹3,000 crore IPO, including key dates, financials, and market position.

Updated : 4 months ago

Categories: IPO, Niva Bupa, Max Bupa, Health Insurance, Finance, Investing, Stock Market

Tags: Niva Bupa Health Insurance IPO, Niva Bupa IPO date, health insurance IPOs, Niva Bupa stock market debut, Niva Bupa financials, IPO subscription details, investment opportunities

Overview of Niva Bupa Health Insurance IPO

Niva Bupa Health Insurance Company Ltd is launching its highly anticipated IPO, aiming to raise ₹3,000 crore. With a fresh issue of ₹800 crore and an offer for sale (OFS) worth ₹2,200 crore, this IPO is one of the key events in the Indian financial markets this year.

Key IPO Details

The IPO consists of a total issue size of ₹3,000 crore, with ₹800 crore allocated for fresh issues. The remaining ₹2,200 crore will be part of the OFS, where Fettle Tone LLP will offload shares worth ₹1,880 crore, and Bupa Singapore Holdings Pte Ltd will sell shares worth ₹320 crore.

Use of Proceeds

The proceeds from the fresh issue, ₹625 crore, will be used to augment the company’s capital base, with the remainder earmarked for general corporate purposes. This capital boost will enable Niva Bupa to meet regulatory requirements and support future growth.

Financial Overview

In FY24, Niva Bupa achieved a gross direct written premium of ₹5,499.43 crore and a profit after tax (PAT) of ₹81.85 crore. The company has assets under management (AUM) of ₹5,458.23 crore, with a 7.1% investment yield. Niva Bupa holds a significant market share of 16.24% in the SAHI segment.

Operational Highlights

Niva Bupa maintains a strong operational presence with a network of 10,460 hospitals and settled claims worth ₹2,249.54 crore in FY24. The company's claims ratio stood at an impressive 59.02%, highlighting its operational efficiency.

Market Sentiment and Growth Potential

As one of the largest standalone retail health insurers in India, Niva Bupa is well-positioned to capture a growing market. With its competitive pricing and comprehensive insurance plans, the company is expected to continue its robust growth trajectory.

Share Allocation

In this IPO, 75% of the issue will be reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Bidders (NIIs), and 10% for Retail Individual Bidders (RIBs). A pre-IPO placement of up to ₹160 crore has also been planned.

IPO Timeline and Lead Managers

The DRHP for the IPO was filed on July 1, 2024, and the IPO is expected to open for subscription soon. The book-running lead managers include ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank, and Motilal Oswal.

Niva Bupa Health Insurance IPO: Frequently Asked Questions

What is the expected date for Niva Bupa Health Insurance IPO?
The exact date for Niva Bupa Health Insurance IPO has not been confirmed, but it is expected to be announced soon.
What is the size of the Niva Bupa Health Insurance IPO?
The total size of the IPO is ₹3,000 crore, which includes a fresh issue of ₹800 crore and an offer for sale (OFS) of ₹2,200 crore.
How will Niva Bupa use the IPO proceeds?
The proceeds from the fresh issue will be used to augment the company’s capital base (₹625 crore), with the remaining being used for general corporate purposes.
What is the market share of Niva Bupa in the health insurance industry?
Niva Bupa holds a 16.24% market share in the Standalone Health Insurance (SAHI) segment as of FY24.
Who are the selling shareholders in the Niva Bupa IPO?
The selling shareholders include Fettle Tone LLP (₹1,880 crore) and Bupa Singapore Holdings Pte Ltd (₹320 crore).
How can I apply for Niva Bupa Health Insurance IPO?
You can apply through your broker’s platform using your Demat account by filling out the IPO application form once the IPO opens for subscription.
What is the price band of Niva Bupa Health Insurance IPO?
The price band is expected to be announced closer to the IPO date, but estimates suggest it will be between ₹550 and ₹600 per share.
How can I check my IPO allotment status?
You can check your allotment status on the registrar's website or through your broker's platform using your PAN or application number.
Who are the lead managers for Niva Bupa Health Insurance IPO?
The lead managers include ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank, and Motilal Oswal.
What is Niva Bupa’s claims ratio for FY24?
Niva Bupa's claims ratio for FY24 was 59.02%, showcasing its operational efficiency in the health insurance sector.