Niva Bupa IPO: Health insurer files DRHP to raise ₹3,000 crore; check details

Health insurance company Niva Bupa has filed the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹3,000 crore via an initial public offering (IPO).

The proposed IPO will comprise a fresh issuance of shares worth ₹800 crore, and an offer-for-sale (OFS) component worth ₹2,200 crore.

The price band for the issue was yet to be disclosed. The book running lead managers for the IPO are ICICI Securities, Morgan Stanley India, Kotak Investment Capital, Axis Capital and HDFC Bank.

Fettle Tone to offload maximum stake via OFS

Fettle Tone LLP, which presently holds a 27.86% stake in the health insurer, will offload shares worth ₹1,880 crore through the offer-for-sale.

The remainder of the shares under the OFS, worth ₹320 crore, will be offloaded by Bupa Singapore Holdings Pte, which presently holds a stake of 62.27% in Niva Bupa.

Niva Bupa financials

The company has enrolled a total of 14.73 million active customers, as of March 31, 2024, and the gross written premium stood at ₹5,607.57 crore. This marked a climb as compared to ₹4,073.03 crore in FY23.

The premium earned stood at ₹3,811.25 crore in FY24, as against ₹2,662.75 crore in the preceding fiscal year. Niva Bupa's total income during FY24 also increased to ₹4,118.63 crore from ₹2,859.24 crore in FY23.

The company's net profit in FY24 skyrocketed to ₹81.85 crore from ₹1.25 crore a year earlier.

The total value of claims it incurred during the fiscal year amounted to ₹2,249.54 crore, higher as compared to ₹1,439.31 crore in FY23. The claim ratio improved to 59.02% in FY24, as compared to 54.05% in the previous financial year.