Health Insurance Giant Niva Bupa Set for Public Listing with ₹3,000 Crore IPO

True North, a prominent home-grown private equity firm, is spearheading an initial public offering (IPO) for Niva Bupa Health Insurance Ltd., previously known as Max Bupa Health Insurance Company. The Securities and Exchange Board of India (SEBI) has granted final observations for the firm to raise ₹3,000 crore through this IPO, marking a significant milestone for the company.

Niva Bupa filed its IPO papers with SEBI on June 29, 2024. The offering consists of a fresh issuance of equity shares valued at ₹800 crore and an offer for sale (OFS) of up to ₹2,200 crore. The OFS includes a substantial portion of shares from Fettle Tone LLP, an investor shareholder, which plans to sell shares worth ₹1,880 crore. Additionally, Bupa Singapore Holdings Pte Ltd, the promoter, will offload shares valued at ₹320 crore.

The ownership structure of Niva Bupa reveals that Bupa, an international healthcare company based in the UK, maintains majority control with a 62.27% stake, while Fettle Tone LLP holds 27.86%. The company aims to utilize ₹625 crore from the fresh issue to enhance its capital base and improve solvency levels, along with general corporate purposes.

This IPO positions Niva Bupa as the second standalone health insurer to pursue public listing, following Star Health & Allied Insurance Company. The offer is being managed by a consortium of financial institutions, including ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors, with plans for the equity shares to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).