Health insurer Niva Bupa has filed for an initial public offering (IPO) to raise up to Rs 3,000 crore, draft papers filed by the company showed.
Majority owned by British United Provident Fund (Bupa), Niva Bupa plans to issue fresh shares worth up to Rs 800 crore as part of the IPO. The proceeds from the sale will be used to strengthen the company’s balance sheet and cover operating expenses.
In addition, existing shareholders Bupa Singapore Holdings and Fettle Tone will sell shares up to Rs 2,200 crore, the company announced.
As of the end of fiscal 2024, Niva Bupa’s borrowings stood at Rs 250 crore, unchanged for the third consecutive fiscal year. The company’s total income, including net premium income, investment income, and other income, rose 44 per cent year-on-year.
ICICI Securities, Morgan Stanley, Kotak Mahindra Capital, and Axis Capital are among the book-running managers for Niva Bupa’s IPO.
The move comes as IPO market witnesses a strong growth. More than 100 companies have raised around $4 billion in IPOs so far this year, more than double the amount raised by this time last year, according to LSEG data. The domestic equity market is at an all-time high, fuelled by expectations of robust economic growth.
(With Reuters inputs)
