From price band to GMP: All about Niva Bupa IPO
Niva Bupa Health Insurance Company is gearing up to launch its ₹2,200 crore initial public offering (IPO) on November 7. The shares will be priced at a band of ₹70-74 per share. While the anchor book will open a day earlier on November 6, the public offer will remain open till November 11. The allotment results for Niva Bupa's IPO will be announced by November 13 and the listing will happen on November 14.
IPO structure and utilization of funds
The IPO consists of a fresh equity issue of ₹800 crore and an offer-for-sale (OFS) of ₹1,400 crore. Under the OFS, Bupa Singapore Holdings and Fettle Tone will divest a portion of their stakes. Niva Bupa plans to use the net proceeds from this fresh issue to strengthen its capital base, improve solvency levels, and meet general corporate purposes.
Niva Bupa's market position and current GMP
Niva Bupa is the second standalone health insurer to file for an IPO in India, after Star Health & Allied Insurance Company. It is India's third largest and second fastest growing standalone health insurer with a Health GDPI of ₹5,494 crore in FY2024. The company has seen a CAGR of 41.37% between FY2022-24. At the time of writing, Niva Bupa IPO's GMP was ₹0, reflecting no premium on listing. However, as subscription opens this week, the GMP may change.
Niva Bupa's innovative approach and distribution network
Niva Bupa employs machine learning-based algorithms and logistic regression models for fraud detection, resulting in better success rates and fewer investigation referrals. The company's overall health GDPI growth of 41.37% between FY22 to FY24 is almost double the industry's 21.42% average. As of March 2024, Niva Bupa has a network of over 143,000 agents and 210 branches across India and distributes products through major institutions like HDFC Bank and Axis Bank.
