Niva Bupa Health Files Draft Prospectus for IPO to Raise Rs 3,000 Crore

Niva Bupa Health Insurance Company specializes in working in the health industry and providing health insurance to end users. More than 14.73 million active insured people will live until March 31, 2024, making it the 2nd largest insurance company after Star Health Insurance, which is going to be listed on the Indian stock market.

Niva Bupa Health Insurance Company, known as Max Bupa Health Insurance Company Limited, is a joint venture between the Bupa Singapore Group, which holds 62.27%, and Fettle Tone LLP, which has a 27.86% stake in the company.

Complete details of the offer for sale (OFS):

Niva Bupa, likely known as Max Bupa Company, offers a proposal of 2220 crore through an offer for sale with their existing shareholders and promoters and a fresh issue of 800 crore.

The highest holding of the Bupa Singapore group is 62.27%, which has been giving service in the healthcare segment for the past 7 decades with a customer base of 50 million in 190 countries, and this is the backbone of the Niva Bupa Health Insurance Company.

The company hired the leading book-runners and lead managers for the IPO, and they are:

• ICICI Securities
• Morgan Stanley India
• Kotak Investment Capital
• Axis Capital
• HDFC Bank

Strategy after getting funds from IPO:

The company is going to invest the money in its app and website to get the maximum engagement and customers for health insurance. 

They already have more than 10,460 hospitals in their network, which they want to expand in the coming months.

Niva Bupa wants to use 625 crore fresh issues to boost its capital base and pay off its financial obligations.

Read more about the upcoming Niva Bupa IPO here.

Conclusion: They want to become the first insurance company to surpass Star Health Insurance, which is already dominating the market and registered in the Indian stock market so that they have a maximum customer base as they claim settlement is 91.6%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.