Niva Bupa Set for Market Debut, DRHP Submission by Early June 2024

Niva Bupa, health insurance company, plans to file its Draft Red Herring Prospectus (DRHP) by late May or early June 2024

Niva Bupa, a health insurance company, is set to get listed on the bourses. The company will be filing its Draft Red Herring Prospectus (DRHP) by the end of May 2024 or early June. 

According to a report by CNBC TV18, Niva Bupa will become the second standalone health insurer to list on the stock exchanges, following Star Health Insurance. 

Sources cited in the report stated that the health insurance firm is planning to raise Rs 3,000 crore through its IPO. The offering will include a fresh share issuance valued between Rs 600-Rs 800 crore.

The IPO could see selling shareholders raise between Rs 2,200- Rs 2,400 crore. According to sources, Fettle Tone LLP, a Special Purpose Vehicle (SPV) formed by True North, is expected to be a major seller in the Niva Bupa IPO Offer for Sale (OFS). Last year, True North sold a 20 per cent stake in Niva Bupa Health Insurance to its international partner Bupa for Rs 2,700 crore.

This deal valued Niva Bupa Health Insurance at Rs 13,500 crore. Following the transaction, True North's stake in the company decreased to 28 per cent and Bupa Singapore Holdings' stake rose to 63 per cent.

At the end of FY23, the company witnessed a rise in its Net Earned Premium (NEP) by 52 per cent and total income by 50 per cent, to reach Rs 2,663 crore and Rs 3,161 crore, respectively.

However, the company's operating profit experienced a decline of 23 per cent to Rs 351 crore in FY23. Despite reporting underwriting losses, these losses reduced by 53 per cent to Rs 148 crore.

The company also recorded a net profit of Rs 13 crore in FY23, a turnaround from the previous year's loss of Rs 197 crore.

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