Niva Bupa Health Insurance, formerly Max Bupa has filed its draft red herring prospectus for a ₹3,000 crore initial public offering, of which ₹800 crore would be raised through a fresh issue and ₹2,200 crore would be an offer-for-sale by promoter and selling shareholders.
Under the OFS portion, Bupa Singapore Holdings Pte would be selling stake worth up to ₹320 crore and Fettle Tone LLP up to ₹1,880 crore.
The company may consider raising up to to ₹160 crore through a pre-IPO placement and in the event of such placement, the fresh issue size will be reduced.
The company will be using the funds raised to the extent of ₹625 crore to increase its capital base to strengthen solvency levels and for general corporate purposes.
In FY24, Niva Bupa Health Insurance Company reported a gross direct written premium of ₹5,499.43 crore and ended the year with a market share of 16.24 per cent in the standalone health insurer (SAHI) space. As of March 31, 2024, Niva Bupa has insured 1.5 crore lives.
Direct sales
According to the Redseer report, Niva Bupa’s overall direct sales channel was the highest amongst SAHIs in terms of total health GDPI contribution in FY24. It is the largest selling non-life insurer insurance broker and web aggregator, Policybazaar.com
Its gross premium from direct sales online channel increased to ₹7,33 crore in FY24 from ₹5,276.79 million in FY22. The health insurer has a diversified channel mix with corporate agents, individual agents and broker channels contributing 27.25 per cent, 32.07 per cent and 27.04 per cent, respectively .
Niva Bupa with Bupa Singapore Holdings Pte. and Bupa Investments Overseas as promoters, is the only health insurance company in India that is majority controlled by a foreign global healthcare group.
ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank and Motilal Oswal Investment Advisors are the book-running lead managers.