Niva Bupa Health Insurance on Monday said it has received final approval from the capital markets regulator, the Securities and Exchange Board of India (SEBI), to raise Rs 3,000 crore through an initial public offering (IPO).
Private equity (PE) firm True North-led company (erstwhile Max Bupa), had filed its IPO papers with SEBI on June 29.
According to the company, the IPO with a face value of Rs 10 each is a mix of fresh issuance of Rs 800 crore and an offer for sale (OFS) of up to Rs 320 crore by Bupa Singapore Holdings, and up to Rs 1,880 crore by Fettle Tone.
The health insurer said in a statement that it intends to utilise the net proceeds from the fresh issuance to the extent of Rs 625 crore towards augmentation of its capital base to strengthen solvency levels and for general corporate purposes.
Niva Bupa had a gross direct written premium (GDPI) of Rs 5,499.43 crore in fiscal 2024.
According to market research firm Redseer, Niva Bupa’s market share in the Indian standalone health insurer (SAHI) market was 16.24 per cent for fiscal 2024, based on retail health GDPI.
It is India’s third largest and second fastest growing standalone health insurer based on overall health GDPI of Rs 54.94 billion in FY24, which grew at a CAGR of 41.37 per cent from Fiscal 2022 to 2024.
From fiscal 2022 to fiscal 2024, Niva Bupa’s overall gross written premium (GWP) increased at a compound annual growth rate (CAGR) of 41.27 per cent, while its retail health GWP grew at a CAGR of 33.41 per cent.
The company said it has adopted a “digital-first” approach in their business and implement technology integration across every step of the customer journey, including customer onboarding, underwriting, claims and renewals.