Private sector health insurance company Niva Bupa Health Insurance is opening an IPO on November 7. At the same time, the closing of the IPO is 11 November. Explain that in this IPO, new equity shares of Rs 800 crore will be issued. Apart from this, an offer for sale of shares worth Rs 1,400 crore will be made by the promoters. Promoter Bupa Singapore Holdings Pte. and global private equity firm True North-owned Fatal Tone LLP will sell shares worth Rs 350 crore and Rs 1,050 crore, respectively, in an offer-for-sale.
Who has how much stake in the company?
Promoters hold an 89.07 percent stake in Niva Bupa Health Insurance, including a 62.19 percent stake in Bupa Singapore Holdings Pte. and a 26.80 percent stake in Fatal Tone LLP. Among the public shareholders, India Business Excellence Fund IV is the largest shareholder with a 2.81 percent stake. V-Sciences Investments Pte (2.60 percent), SBI Life Insurance Company (1.3 percent), and A91 Emerging Fund II LLP (1.03 percent) are the shareholders in this company.
Where will the money be used?
The Gurugram-based health insurance company has also told about the plan to use the money raised from the IPO. The company will increase its capital base to maintain and strengthen its solvency level by investing in equipment. For this, the company will use Rs 800 crore.
When will the listing be done?
After the IPO closes, the allotment details will come by November 13. Its expected listing date is November 14. Investors can start trading in Niva Bupa Health Insurance shares on BSE and NSE from November 14. The book-running lead managers handling the IPO are ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors. KFin Technologies is the registrar of this offer.
Fourth Insurance Company
After listing, the company is the fourth health insurance firm available for trading on the stock market after Star Health and Allied Insurance, ICICI Lombard General, and New India Assurance. On the financial front, the insurer reported a profit of Rs 81.85 crore in FY24, significantly higher than Rs 12.5 crore in the previous financial year. Operating profit fell sharply to Rs 188 crore from Rs 350.9 crore during the same period.