The initial public offer (IPO) of Niva Bupa Health Insurance company received 31,13,73,200 bids for shares as against 17,28,57,143 shares on offer. The issue was subscribed 1.80 times.

The Retail Individual Investors (RIIs) category was subscribed 2.73 times. The Qualified Institutional Buyers (QIBs) category was subscribed 2.06 times. The Non-Institutional Investors (NIIs) category was subscribed just 0.68 times.

The issue opened for bidding on 7 November 2024 and it closed on 11 November 2024. The price band of the IPO was fixed between Rs 70 to 74 per share.

The initial public offer (IPO) consisted of fresh issue of equity shares upto Rs 800 crore and an offer for sale of Rs 1400 crore from promoters Bupa Singapore Holdings Pte (Rs 350 crore) and Fettle Tone LLP (Rs 1,050 crore).

The promoter shareholding will decline to 73.4% post-IPO from 89.1% pre-IPO.

The company proposed to utilize the net proceeds from the fresh issue towards augmentation of its capital base to maintain and strengthen its solvency levels by investing in instruments and in the manner prescribed under the IRDAI Regulations.

The issue will also bring the benefits of listing the equity shares on the stock exchanges, including enhancing brand image among existing and potential customers and creation of a public market for the equity shares in India.

Ahead of the IPO, Niva Bupa Health Insurance Company on Wednesday, 6 November 2024 raised Rs 989.99 crore from anchor investors. The board allotted 13.37 crore shares at Rs 74 each to 32 anchor investors.

Niva Bupa Health Insurance Company incorporated in September 2008 is the third largest and the second fastest growing standalone health insurer (SAHI) in India based on overall health gross direct premium income (GDPI) of Rs 5,494.43 crore in FY24. There are 7 IRDAI-recognized SAHIs in India. The company is also the fourth largest player within the overall retail health insurance with a market share of 9.10% in FY24.

Gross Written Premium (GWP) of Niva Bupa grew at a strong CAGR of 41.27% in the last three years ended FY24, which is almost double of the industry’s average of 21.4%. Retail health GWP also grew at a strong CAGR of 33.41%. The company has continued to gain market share in the Indian SAHI market to 17.29% in April-August 2024 from 16.24% in FY24, 15.58% in FY23 and 13.87% in FY22 based on retail health GDPI.

The firm reported a net loss of Rs 18.82 crore and total income of Rs 72.63 crore for the three months ended on 30 June 2024.