Tue Nov 05 07:43:37 UTC 2024: ## Niva Bupa Health Insurance to Go Public, Aims to Raise ₹2,200 Crore

**New Delhi, October 26, 2024:** Niva Bupa Health Insurance, a joint venture between Bupa Group and Fettle Tone LLP, is set to enter the primary market with an initial public offering (IPO) scheduled for November 7-11. The company aims to raise ₹2,200 crore through the offering, with ₹800 crore from a fresh share issue and ₹1,400 crore from an offer for sale (OFS) by its promoters.

The IPO price band has been fixed at ₹70-74 per share. While the shares are currently trading at par in the grey market, institutional investors will have the opportunity to secure shares ahead of the public offering during the anchor allotment on November 6.

Each lot in the IPO consists of 200 shares, requiring a minimum investment of ₹14,800 at the upper price band. The company has allocated 75% of the shares for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors. Additionally, up to 750,000 shares will be reserved for employees at a discount of ₹25 per share.

Proceeds from the fresh share issue will be utilized to strengthen the company’s capital base and enhance its solvency levels, along with other general corporate purposes. Funds from the OFS will go to the selling shareholders, Bupa Singapore Holdings and Fettle Tone LLP.

Niva Bupa Health Insurance has demonstrated strong growth in recent years, reporting a 44% year-on-year increase in revenue for FY24 and a 550% surge in profit after tax (PAT). As of March 31, 2024, the company insured 14.73 million active lives and has expanded its reach across 22 states and four union territories in India. However, the company reported a net loss of ₹18.82 crore for the quarter ending June 30, 2024, despite a net profit of ₹81.85 crore for the financial year ending March 31, 2024.

The shares of Niva Bupa Health Insurance are expected to list on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on November 14, 2024. The IPO is being managed by a consortium of leading financial institutions, including ICICI Securities, Morgan Stanley, and Kotak Mahindra Capital.

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