Niva Bupa Nicely being plans IPO to expand Rs 3,000 crore

Synopsis

The firm, a joint mission between UK-based mostly mostly Bupa and the home non-public equity firm Right North, has engaged investment bankers, reminiscent of Kotak Mahindra Capital, ICICI Securities, and Morgan Stanley, to control the impending public bother, sources told ET.

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Niva Bupa is the third-finest standalone medical health insurance protection (SAHI) and the ninth-finest overall medical health insurance protection participant in India. Within the retail health section, it is the third-finest participant overall and the 2nd-finest among SAHIs.

Mumbai: Niva Bupa Nicely being Insurance, formerly in most cases known as Max Bupa Nicely being Insurance, is gearing up for an initial public offering (IPO) of Rs 3,000 crore, as per banking sources.

The firm, a joint mission between UK-based mostly mostly Bupa and the home non-public equity firm Right North, has engaged investment bankers, reminiscent of Kotak Mahindra Capital, ICICI Securities, and Morgan Stanley, to control the impending public bother, sources told ET.

Presently, UK-based mostly mostly Bupa holds a 63% stake, while Right North owns a 28% stake. About 7% is held by other monetary investors, with workers conserving the final 2%. The final public bother is put to encompass both contemporary issuances and an provide within the marketplace (OFS).

“The health insurer has enlisted the companies of three bankers for its Rs 3,000 crore public bother, primarily aimed at augmenting equity capital for declare and regulatory requirements,” mentioned one in every of the persons mentioned above.

An email despatched to Niva Bupa Nicely being Insurance did no longer elicit any response.

Niva Bupa is the third-finest standalone medical health insurance protection (SAHI) and the ninth-finest overall medical health insurance protection participant in India as of FY2023. Within the retail health section, it is the third-finest participant overall and the 2nd-finest among SAHIs. Star Nicely being and Allied Insurance, which is a listed standalone health-quilt supplier, has a market payment of better than Rs 32,000 crore.

In October final year, Right North sold 20% of Niva Bupa to UK-based mostly mostly partner Bupa for roughly Rs 2,700 crore. Right North got a 51% stake held by Analjit Singh's Max India within the insurer for Rs 511 crore in 2019, then in most cases known as Max Bupa Nicely being Insurance, for an enterprise valuation of Rs 1,001 crore.

Between FY18 and FY23, Nuva Bupa witnessed a necessary declare in market share, with figures rising to 4.4% in overall health and eight.4% in retail health, up from 2.0% and 4.1%, respectively. Over this length, the compound annual declare rates (CAGR) for overall and retail health premiums reached 40% and 36%.

Niva reported losses for most of FY18-22, adversely impacted by excessive ranges of claims right thru the COVID length. Also, the firm has been increasing at a unparalleled increased payment than the alternate, leading to increased capital requirements. The equity capital coarse for Niva increased to Rs 1580 crore as of September 30, 2023, from Rs 930 crore in FY2018.

The firm has a network of 200 plus branches, 1,Forty five,000 particular individual agents, 46 corporate agents, and has tie-u.s.with 10,000-plus hospitals.

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