Synopsis
- Niva Bupa IPO Launch: Opens November 7, closes November 11, 2024.
- Price Band: ₹70-74 per share.
- Total Issue Size: ₹2,200 crore, with ₹800 crore fresh equity and ₹1,400 crore from the OFS.
- Allocation: 75% to QIBs, 15% to NIIs, and 10% to retail investors.
- Listing Date: Expected on November 14, 2024.
Niva Bupa Health Insurance Company Ltd, previously known as Max Bupa, is set to launch its initial public offering (IPO) to raise ₹2,200 crore. The price band for the shares is fixed at ₹70-74 each. The IPO will be open for subscription from November 7 to November 11, 2024, with anchor investors having a chance to bid on November 6.
The share allocation includes 75% for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors. Additionally, 750,000 shares are reserved for employees at a ₹25 discount per share.
The IPO consists of ₹800 crore from fresh equity shares and ₹1,400 crore from an offer-for-sale (OFS) by promoters. In the OFS, Bupa Singapore Holdings will sell shares worth ₹1,050 crore, while Fettle Tone LLP will offload shares worth ₹350 crore. Bupa Singapore Holdings currently holds 62.19% of the company, and Fettle Tone LLP has a 26.8% stake.
The proceeds will be used to strengthen the company’s capital base and enhance solvency levels, along with general corporate purposes. Niva Bupa, recognized as a significant player in the health insurance sector, is the second standalone health insurer in India to pursue an IPO, following Star Health & Allied Insurance Company.
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The IPO is managed by several leading financial institutions, including ICICI Securities, Morgan Stanley, and Kotak Mahindra Capital. Shares are expected to list on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on November 14, 2024.
