Thu Nov 07 00:47:29 UTC 2024: ## Niva Bupa Health Insurance IPO Opens Today, Aims to Raise ₹2,200 Crore
**Mumbai, November 7, 2024:** Niva Bupa Health Insurance Company Ltd., formerly known as Max Bupa Health Insurance Company, is launching its initial public offering (IPO) today. The issue, priced between ₹70 and ₹74 per share, will close on Monday, November 11. The company already raised ₹990 crore from anchor investors on Wednesday, including notable names like Zulia Investments Pte, Amansa Holdings, and Morgan Stanley.
The IPO comprises a fresh issue of ₹800 crore and an offer for sale (OFS) of up to ₹1,400 crore. The company has scaled down its initial fundraising target of ₹3,000 crore. Niva Bupa plans to use the proceeds from the fresh issue to strengthen its capital base and improve solvency levels.
Niva Bupa is a prominent player in India’s health insurance sector and is one of the leading standalone retail health insurers (SAHI). The company reported a significant growth in Gross Written Premium (GWP) to ₹5,607.57 crore in fiscal 2024, a 37.68% increase from the previous year. Its profit also rose to ₹81.85 crore in fiscal 2024.
Despite its positive performance, analysts have mixed views on the IPO. While some believe Niva Bupa’s growth trajectory justifies the IPO, others point to its recent negative earnings in the first quarter of fiscal 2025 and the aggressive pricing of the issue.
The IPO has been valued at a price-to-book value (P/BV) of 6.19, which some analysts consider aggressive. They recommend investors with a high-risk appetite to consider subscribing to the IPO.
ICICI Securities Ltd, Morgan Stanley India Company Pvt Ltd, and Kotak Mahindra Capital Company Ltd are the book-running lead managers for the issue, while Kfin Technologies Ltd is the registrar.
First Piper 