Niva Bupa Health Insurance IPO

Niva Bupa Health Insurance IPO Details

Niva Bupa IPO Date

According to the offer document filed by the company with SEBI, the Niva Bupa IPO’s opening date – in other words, the Niva Bupa IPO launch date – will be 7th November 2024. The Niva Bupa IPO closing date is 11th November 2024. After this, investors will be updated about the allotment status on 12th November 2024.

Investors who have been allotted shares can expect them to be credited to their demat account on 13th November 2024. The Niva Bupa IPO listing date is 14th November 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE. 

Niva Bupa IPO Price Band

The IPO is a fresh issue, as well as an offer for sale. The Niva Bupa IPO price band has been set between ₹70 and ₹74 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Niva Bupa IPO listing price will be determined on 14th November 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

Niva Bupa IPO Lot Size

The Niva Bupa IPO details have been declared. The Niva Bupa IPO lot size is set at 200 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Niva Bupa IPO issue size is approx ₹2200 crore. 

About Niva Bupa Health Insurance

Incorporated in 2008, Niva Bupa Health Insurance Limited is one of India’s largest and fastest-growing Standalone Health Insurance Companies (SAHI). It offers health insurance products and services as well as a range of healthcare solutions, including diagnostics, digital consultation, annual health check-ups, and health education content on its ‘Niva Bupa Health’ mobile application and website.

It is promoted by Bupa Singapore Holdings Pte. Ltd. and Bupa Investments Overseas Limited, members of the Bupa Group, which offers health insurance, healthcare provision, and aged services in the UK, Australia, Spain, Chile, Poland, New Zealand, Hong Kong SAR, Türkiye, Brazil, Mexico, India, the US, Middle East, and Ireland. 

As of 30 June 2024, it has a network of 210 physical branches across 22 states and 4 union territories in India. It has also insured 14.99 million active lives.

It sells its products through direct sales channels comprising its sales team and online sales. It also has intermediated distribution channels comprising individual agents, corporate agents (banks and others), brokers, insurance marketing firms, POSPs and web aggregators. 

It distributes its products through 77 corporate agents, such as HDFC and AXIS bank and has a network of 10,426 hospitals as of 30 June 2024. 

Between FY22 and FY24, it saw a CAGR rise of 43% in its GWP (Gross Written Premium). It witnessed a loss of ₹196 crore in FY22 followed by profits of ₹12.5 and ₹81.8 crore in FY23 and FY24, respectively. Moreover, the health insurance segment in India is expected to grow at a CAGR of 15-17% between FY24 and FY29, which could benefit the company.

Now, Niva Bupa Health Insurance Limited is launching its initial public offer (IPO). The total IPO issue size is ₹2,200 crore, comprising fresh issue, aggregating to ₹800 crore, and an offer for sale, aggregating to ₹1,400 crore. The money raised from the issue will be utilised to augment the company’s capital base. Its shares will be listed on the NSE and BSE.

Company Name:  Niva Bupa Health Insurance Limited

Company Established On: 5 September 2008

Company Type: Public Limited Company

CEO/MD:  Krishnan Ramachandran

Financial snapshot

Niva Bupa Health Insurance IPO Analysis

Strengths and opportunities

1. The third largest and the second fastest growing SAHI in India based on overall health GDPI in FY24 with a market share of 17% as of year-to-date August 2024.
2. Customer-centric proposition with products such as Reassure catering to affluent customers; “Booster+” which allows customers to carry forward the balance sum insured of up to 10 times of the base cover, and ‘Aspire’ to target millennials.
3. Technology-led automated approach as 99% of its new policies were applied for digitally as of 30 June 2024.  
4. Benefits from Bupa parentage in areas of product innovation, technical support and actuarial insight, customer centricity, and localised global customer solutions.
5. Domain knowledge and experience with a claims settlement ratio of 91% as of FY24.
6. Multi-channel, diversified, and pan-India distribution channels with an individual agency network of 152,436 agents as of 30 June 2024.
7. Technology and analytics platforms present across every aspect of its business, including customer sourcing, onboarding and underwriting, payments, claims management and policy renewal.

Risks and threats

1. Subject to extensive supervision and regulatory inspections by IRDAI and any regulatory and statutory actions could cause reputational harm.
2. Dependent on its intermediated distribution channels, particularly individual agents, corporate agents and brokers, and inability to retain or incentivise its distributors could adversely affect its business.
3. Has incurred losses in FY22, Q1 FY24 and Q1 FY25 due to the second outbreak of COVID-19, and seasonality in its business with slower revenue growth in the first quarter of each fiscal, respectively.
4. Credit and liquidity risks related to its investments and day-to-day operations may expose it to significant losses. 
5. Operates in a highly competitive, evolving and rapidly changing industry as there are seven IRDA-recognized SAHI companies (including our Company) in India as of 31 August 2024.
6. Has borrowings of ₹250 crore as of 30 June 2024, which exposes it to restrictions. 

How to apply for the Niva Bupa Health Insurance IPO?

If you are interested to invest in Niva Bupa Health Insurance IPO, following are the steps to apply:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Niva Bupa Health Insurance IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app