The IPO with a face value of Rs10 each is a mix of fresh issuance of Rs 800 crore and an offer for sale of up to Rs 320 crore
FinTech BizNews Service
Mumbai, 22 October, 2024: Private Equity Firm, True North led Niva Bupa Health Insurance Ltd (erstwhile Max Bupa), has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise Rs 3,000 crore through an initial public offering (IPO).
The Company had filed its IPO papers with Sebi on June 29, 2024.
The IPO with a face value of Rs10 each is a mix of fresh issuance of Rs 800 crore and an offer for sale of up to Rs 320 crore by Bupa Singapore Holdings Pte. Ltd., and up to Rs 1880 crore by Fettle Tone LLP.
The company intend to utilize the net proceeds from the fresh issuance to the extent of Rs. 625 towards augmentation of its capital base to strengthen solvency levels and for general corporate purposes.
Niva Bupa Health Insurance Company Limited is one of India’s largest and fastest growing standalone health insurer (SAHI) in India, with a Gross Direct Written Premium (GDPI) of Rs5,499.43 crore in Fiscal 2024. The company aims to “give every Indian the confidence to access the best healthcare” through their health insurance products and services that enable customers to navigate their healthcare journey, by providing them access to a holistic health ecosystem. Niva Bupa adopts a “digital-first” approach in their business and implement technology integration across every step of the customer journey, including customer onboarding, underwriting, claims and renewals. According to Redseer, Niva Bupa's market share in the Indian SAHI market was 16.24% for Fiscals 2024, based on retail health GDPI.
Niva Bupa is the second standalone health insurers (SAHI) to eye at the Indian bourses through IPO, after Star Health & Allied Insurance Company. Niva Bupa is India’s 3rd largest and 2nd fastest growing SAHI based on Overall Health GDPI of INR 54.94 Bn in Fiscal 2024, which grew at a CAGR of 41.37% from Fiscal 2022 to 2024
Niva Bupa uses machine learning based algorithms and logistics regression models to identify fraudulent claims, and this has helped them drive higher success on fraud detection, and reduce investigation referrals, thereby minimizing impact on the customer experience
As of March 31, 2024, with it has 143,074 agents, Niva Bupa has 210 physical branches across 22 states and 4 union territories in India. It distributes products through 64 banks and other corporate agents, including major institutions like HDFC Bank and Axis Bank, according to the Redseer Report. In addition to it, Niva Bupa has delivered strong customer service metrics on claims with a 91.93% claims settlement ratio for Fiscal 2024 and 81.50% of pre-authorized cashless claims were approved in less than 30 minutes in Fiscal 2024, and it has the highest percentage of pre-authorized claims processed within 1 hour among all SAHIs, as per the Redseer Report.
From Fiscal 2022 to Fiscal 2024, Niva Bupa's overall GWP increased at a compound annual growth rate (CAGR) of 41.27%, while its retail health GWP grew at a CAGR of 33.41%. The company's overall health GDPI growth of 41.37% during this period is one of the highest among SAHIs and nearly double the industry's average growth rate of 21.42%, as reported by Redseer.
ICICI Securities Limited, Morgan Stanley India Company Private Limited, Kotak Mahindra Capital Company Limited, Axis Capital Limited, HDFC Bank Limited and Motilal Oswal Investment Advisors Limited are the book-running lead managers and KFin Technologies Limited is the registrar of the offer.
