Health insurer Niva Bupa may file draft papers with SEBI by June to raise ₹3,000 crore via IPO, says report

Leading health insurance firm Niva Bupa is expected to take forward the process to launch its initial public offering (IPO) with the filing of the Draft Red Herring Prospectus (DRHP) within the next one month, according to a report.

The private insurance company is aiming to raise ₹3000 crore via its maiden public offer. Niva Bupa is likely to file draft papers for the public issue with the market regulator Securities and Exchange Board of India (SEBI) by May-end or early June, according to a CNBC TV-18 report.

The public offer is likely to be a combination of fresh issue of shares worth nearly ₹600-800 crore and an Offer-for-Sale (OFS) component amounting to ₹2,200-2,400 crore, the report added.

If the company goes ahead with the IPO, Niva Bupa will become the second standalone health insurer after Star Health to get listed on the stock exchanges. Niva Bupa will also become the second insurance company to go public this year after Go Digit General Insurance Ltd.

The report mentioned that True North (Indian-Fettle Tone LLP) can be a large seller in Niva Bupa IPOs’ OFS since the company holds nearly 28% stake in the insurance firm. Fettle Tone LLP is a special purpose vehicle (SPV) set up by True North Fund VI LLP under the IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines, 2017.

UK based international healthcare company Bupa was a founding shareholder in Niva Bupa in India in 2008 along with True North, a private equity firm. In the year 2023, Bupa bought True North’s 20% stake in Niva Bupa for nearly ₹2,700 crore, according to a release by the company. After the purchase of stake, Bupa became the majority shareholder in the company.

In FY 23, Niva Bupa became the third-largest retail health insurance firm in India with a gross written premium of over ₹4,000 crore.

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