Niva Bupa Health Insurance IPO
Niva Bupa Health Insurance Company Limited is launching its initial public offering (IPO) from November 7-11, 2024. The company offers a range of health insurance products for individuals, families, and groups across India. This article provides a detailed overview of the IPO, including its key features and analyst review.
RI
by RA ALOK DAIYA SEBI Reg. INH000011468
BSE Enlistment No. 5737
IPO Structure and Timeline
1
IPO Opening
The Niva Bupa Health Insurance IPO opens for subscription on November 7, 2024.
2
IPO Closing
The IPO closes for subscription on November 11, 2024.
3
Allotment Date
The basis of allotment is expected to be finalized on November 12, 2024.
4
Listing Date
The shares are tentatively scheduled to list on BSE and NSE on November 14, 2024.
The IPO consists of a fresh issue of 10.81 crore shares aggregating to Rs 800 crores and an offer for sale of 18.92 crore shares aggregating to Rs 1,400 crores. The price band is set at Rs 70-74 per share, with a minimum lot size of 200 shares. The minimum investment required for retail investors is Rs 14,800.
About Niva Bupa Health Insurance
Niva Bupa Health Insurance Company Limited, incorporated in 2008, is a joint venture between the Bupa Group and Fettle Tone LLP. The company offers health insurance products for individuals, families, and groups across India. As of March 31, 2024, Niva Bupa had 14.73 million active lives insured and was present across 22 states and four union territories in India.
Product Categories
1. Retail products for individuals and families 2. Group products for employers and employees
Growth
From Fiscal Year 2022 to Fiscal Year 2024, the overall GWP grew at a CAGR of 41.27%, while GWP from retail health increased by 33.41%.
Technology
As of March 31, 2024, the company's technology function had 126 employees focused on developing digital assets, software, and mobile applications.
Sales Team
As of March 31, 2024, the telemarketing sales team has 410 employees, using machine learning lead scoring, product recommendations, and a real-time CRM dashboard.
IPO Objectives and Lead Managers
The company proposes to utilize the Net Proceeds towards the following objects:
- Augmentation of its capital base to strengthen solvency levels
- General corporate purposes
The lead managers for the Niva Bupa Health Insurance IPO are:
- ICICI Securities Limited
- Morgan Stanley India Company Pvt Ltd
- Kotak Mahindra Capital Company Limited
- Axis Capital Limited
- HDFC Bank Limited
- Motilal Oswal Investment Advisors Limited
Kfin Technologies Limited is the registrar for the IPO.
Financial Information and Key Performance Indicators
Niva Bupa Health Insurance Company Limited's revenue increased by 44.05% and profit after tax (PAT) rose by 552.73% between the financial year ending with March 31, 2024 and March 31, 2023.
Key Performance Indicators as of June 30, 2024:
- Debt/Equity: 0.12
- RoNW: -0.92
- P/BV: 6.14
- Market Capitalization: Rs 13380.91 Cr
IPO Subscription and Allotment Process
The Niva Bupa Health Insurance IPO offers 29,72,97,298 shares with the following reservation:
- 30% (8,91,89,190 shares) to QIB
- 15% (4,45,94,595 shares) to NII
- 10% (2,97,29,730 shares) to RII
- 45% (13,37,83,783 shares) to Anchor investors
The allotment for the Niva Bupa Health Insurance IPO is expected to be finalized on Tuesday, November 12, 2024. Allotted shares will be credited to investors' demat accounts by Wednesday, November 13, 2024.
IPO Review
Niva Bupa Health Insurance is a leading health insurance provider in India, known for its rapid growth. While its performance has improved significantly since FY23, the IPO pricing initially seemed ambitious. However, recent internal share placements at Rs. 67.15 to Rs. 85 per share suggest the IPO is appropriately valued.
Moreover, the company plans to invest in expanding its health insurance ecosystem, with initiatives such as health assessment tools and wellness content. The company is also forging partnerships for services like digital consultations and home medicine delivery.