• Source:JND
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Niva Bupa IPO Price Band:  Niva Bupa Health Insurance Company Ltd., formerly Max Bupa Health Insurance Company, said on Monday that it has set a price range of Rs 70-74 per share. The health insurance provider aims to raise  Rs 2,200 crore through an initial share sale. Niva Bupa's IPO will open between November 7 and Novembe 11. The company said the anchor investor bid would open for one day on November 6.

Niva Bupa's initial share sale is a combination of a fresh issue of equity shares worth Rs 800 crore and an offer for sale worth up to Rs 1,400 crore by existing investors. The company had earlier sought to raise Rs 3,000 crore but later reduced the size of the issue.

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Under the OFS, Fettle Ton LLP will sell shares worth Rs 1,050 crore and Bupa Singapore Holdings Pte. Ltd. will offload shares worth Rs 350 crore. Bupa Singapore Holdings Pte. Ltd. currently holds a 62.19 per cent stake in the company, while Fattle Ton LLP holds a 26.8 per cent stake.

The company said it would use the net proceeds from the fresh issue to increase its capital base and strengthen its solvency level. It will also use the money for general corporate purposes. This would be the second standalone health insurer to be listed on the bourses after Star Health & Allied Insurance Co. Seventy-five per cent of the issue size is reserved for eligible institutional buyers, 15 per cent for non-institutional buyers and the remaining 10 per cent for retail investors.

Niva Bupa Health Insurance Company is one of the leading standalone retail health insurers (SAHIs) in India. It achieved a gross direct written premium (GDPI) of Rs 5,499.43 crore in FY22 and Rs 5,607.57 crore in FY23, an increase of 37.68 per cent from Rs 4,073.03 crore in FY22.

ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank and Motilal Oswal Investment Advisors are the book-running lead managers of the offering. The equity shares are proposed to be listed on the BSE and the NSE.

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(With Agencies Input)