by Suman Gupta
Mumbai, November 04, 2024: Niva Bupa Health Insurance Company Limited, one of India’s largest and fastest growing standalone retail health insurer (SAHI) based on overall health GDPI in Fiscal 2024, has fixed the price band of ₹70/- to ₹74/- per Equity Share of face value ₹10/- each for its maiden initial public offer.
The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Thursday, November 07, 2024, for subscription and close on Monday, November 11, 2024. Investors can bid for a minimum of 200 Equity Shares and in multiples of 200 Equity Shares thereafter.
The IPO is a mix of fresh issue of up to Rs 800 crore and an offer of sale up to Rs 1,400 crore by Bupa Singapore Holdings Pte. Ltd., Fettle Tone LLP.
The proceeds from its fresh issuance will be utilized to the extent of Rs 1,500 crore for augmentation of capital base to maintain and strengthen solvency levels; and general corporate purposes.
Niva Bupa Health Insurance Company Limited purpose is to “give every Indian the confidence to access the best healthcare” through their health insurance products and services that enable customers to navigate their healthcare journey, by providing them access to a holistic health ecosystem. Niva Bupa adopts 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. As of June 30, 2024, Niva Bupa have had insured 14.99 million lives.
Niva Bupa is India’s 3rd largest and 2nd fastest growing SAHI based on Overall Health GDPI of INR 54.94 Bn in Fiscal 2024, which grew at a CAGR of 41.37% from Fiscal 2022 to 2024 almost double of the industry’s average.
Niva Bupa uses machine learning based algorithms and logistics regression models to identify fraudulent claims, and this has helped them drive higher success on fraud detection, and reduce investigation referrals, thereby minimizing impact on the customer experience
From Fiscal 2022 to Fiscal 2024, Niva Bupa’s overall GWP increased at a compound annual growth rate (CAGR) of 41.27%, while its retail health GWP grew at a CAGR of 33.41%. The company’s overall health GDPI growth of 41.37% during this period is one of the highest among SAHIs and nearly double the industry’s average growth rate of 21.42%, as reported by Redseer.
For the three months ended June 30, 2024, the overall GWP grew at 30.84% and its GWP from retail health grew at 31.99%.
According to Redseer, Niva Bupa’s market share in the Indian SAHI market was 16.24% for Fiscals 2024, based on retail health GDPI and for the for the five months ended August 31, 2024 stood at 17.29%.
ICICI Securities Limited, Morgan Stanley India Company Limited, Kotak Mahindra Capital Company Limited, Axis Capital Limited, HDFC Bank Limited and Motilal Oswal Investment Advisors Limited are the book-running lead managers and KFin Technologies Limited is the registrar of the offer.
The offer is being made through the book-building process, wherein not less than 75% of the net offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the offer shall be available for allocation to non-institutional bidders, and not more than 10% of the offer shall be available for allocation to retail individual bidders.
Notes for Reference:
Issue Size of the IPO based on the upper and lower end of the price band
Fresh OFS Total
Lower Band (@Rs 70) Rs 800 crore Rs 1,400 crore Rs 2,200 crore
Upper Band (@Rs 74) Rs 800 crore Rs 1,400 crore Rs 2,200 crore
