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Company Profile
Niva Bupa Health Insurance, based in Gurugram, is a joint venture between the UK-based Bupa Group and India’s Fettle Tone LLP, which is managed by the private equity firm True North. Founded as a standalone health insurance provider, Niva Bupa is one of India’s largest SAHI (Standalone Health Insurance) companies by market share and revenue. In fiscal 2024, the company reported a gross direct premium income (GDPI) of Rs 5,494.43 crore, showcasing steady growth. The company holds a 17.29% market share in the Indian health insurance sector, with a focus on providing comprehensive health coverage to its clients.
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| Category | Details |
| Company Name | Niva Bupa Health Insurance Company |
| Industry | Health Insurance |
| Headquarters | Gurugram, India |
| Founding Year | Joint venture between Bupa Group (UK) and Fettle Tone LLP (India, backed by True North) |
| Promoters | Bupa Singapore Holdings Pte (62.19%) and Fettle Tone LLP (26.80%) |
| Market Position | One of India’s largest standalone health insurers (SAHI) |
| Market Share (FY 2025) | 17.29% |
| Fiscal 2024 Gross Direct Premium Income (GDPI) | Rs 5,494.43 crore |
| Net Profit (FY 2024) | Rs 81.85 crore (up from Rs 12.5 crore in FY 2023) |
| Operating Profit (FY 2024) | Rs 188 crore (down from Rs 350.9 crore in FY 2023) |
| IPO Size | Rs 2,200 crore |
| IPO Components | Fresh equity issuance (Rs 800 crore) and Offer-for-Sale (Rs 1,400 crore) |
| Use of Proceeds | To strengthen capital base and improve solvency levels |
| IPO Subscription Dates | November 7, 2024 – November 11, 2024 |
| IPO Lead Managers | ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank, Motilal Oswal |
| IPO Registrar | KFin Technologies |
| Listing Date | Expected November 14, 2024 |
IPO Announcement
Niva Bupa Health Insurance, a major standalone health insurer in India, is set to launch its IPO on November 7, 2024
Overview of Niva Bupa Health Insurance IPO
- IPO Size and Components: The IPO aims to raise Rs 2,200 crore. This consists of:
- A fresh equity issuance of Rs 800 crore to increase the company’s capital.
- An offer-for-sale (OFS) worth Rs 1,400 crore, where existing promoters will sell their shares.
Details on Promoters and Shareholders
- Selling Promoters: Two key promoters—Bupa Singapore Holdings Pte and True North-owned Fettle Tone LLP—will sell shares worth Rs 350 crore and Rs 1,050 crore, respectively, through the OFS.
- Shareholding Structure:
- Bupa Singapore Holdings Pte currently holds 62.19% of the company, while Fettle Tone LLP holds 26.80%.
- Promoters currently control 89.07% of Niva Bupa.
- After the sale, True North will no longer be a promoter and will instead hold shares as an investor.
Subscription Timeline and Pricing
- Opening Date: The IPO opens on November 7 and closes on November 11.
- Anchor Investors: Institutional anchor investors can subscribe a day early on November 6.
- Price Band: The company will announce the price band by Monday before the IPO launch.
Purpose of the IPO Proceeds
- Capital Base Strengthening: The Rs 800 crore from the fresh issuance will go towards strengthening Niva Bupa’s capital base and improving solvency levels, helping the company remain financially stable for future growth.
Company’s Financial Performance
- Growth in Market Share: Niva Bupa is among India’s largest standalone health insurers, with a 17.29% market share in fiscal 2025, up from 16.24% in fiscal 2024.
- Revenue and Profit Trends:
- The company reported a net profit of Rs 81.85 crore in fiscal 2024, a notable increase from Rs 12.5 crore the previous year.
- Operating profit, however, declined from Rs 350.9 crore to Rs 188 crore.
- Recent Performance: In Q1 of fiscal 2025, Niva Bupa reported a smaller loss of Rs 18.8 crore, improving from a Rs 72.2 crore loss the previous year, showing signs of stabilization in operations.
Post-IPO Listing
- Allotment and Trading Dates:
- Shares will be allotted by November 12, credited to investors by November 13, and will begin trading on the BSE and NSE on November 14.
- Market Presence: This will make Niva Bupa the fourth health insurer to list on Indian stock exchanges, joining Star Health, ICICI Lombard, and The New India Assurance Company.
Lead Managers and Registrar
- Underwriters: ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors are managing the issue.
- Registrar: KFin Technologies has been appointed as the IPO’s registrar.
My Perspective and Conclusion
This IPO is significant for Niva Bupa, as it aims to solidify its financial foundation in a competitive health insurance market. The growth in its gross premium income and market share shows strong customer acceptance, although the fluctuation in profitability signals challenges in maintaining operating margins.
The fresh funds should help Niva Bupa meet its solvency needs and expand its operations. For investors, the health insurance sector is an attractive area due to its long-term growth potential, especially with increased awareness around health and insurance needs in India.
Conclusion: Niva Bupa’s IPO offers an opportunity for investors to participate in a rapidly growing industry. However, the company’s financial performance will need close monitoring, particularly on profitability and operational efficiencies, to ensure it can sustain its market share and compete effectively post-listing.
