IPO Corner: Niva Bupa Health Insurance Company Ltd.

Niva Bupa Health Insurance Company Limited, one of India’s largest and fastest growing standalone retail health insurer (SAHI) based on overall health GDPI in Fiscal 2024, has fixed the price band of ₹70/- to ₹74/- per Equity Share of face value ₹10/- each for its maiden initial public offer.

• Issue Opens on: November 7, 2024
• Issue Closes on: November 11, 2024
• Face Value: Rs 10 each
• Price Band: ₹ 70 – ₹ 74 Per Share
• Lot Size: 200 Equity Shares

The Initial Public Offering of the Company will open on Thursday, November 07, 2024, for subscription and close on Monday, November 11, 2024. Investors can bid for a minimum of 200 Equity Shares and in multiples of 200 Equity Shares thereafter. The IPO is a mix of fresh issue of up to Rs 800 crore and an offer of sale up to Rs 1,400 crore by Bupa Singapore Holdings Pte. Ltd., Fettle Tone LLP.

The proceeds from its fresh issuance will be utilized to the extent of Rs 1,500 crore for augmentation of capital base to maintain and strengthen solvency levels; and general corporate purposes.

Niva Bupa Health Insurance Company Limited purpose is 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. As of June 30, 2024, Niva Bupa have had insured 14.99 million lives.

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 almost double of the industry’s average.

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