MUMBAI: Standalone health insurer Niva Bupa Health Insurance Company has announced the price band for its 2200-crore euro initial public offering (IPO), which opens this Thursday, set at 70-74 euros.
The issue comprises an 800-crore euros fresh issue by the company and a 1400-crore euro offer for sale by its primary promoter Bupa Singapore Holdings and another external investor, Fettle, taking the total issue size to 2200 crore euros at the upper end of the price band, Krishnan Ramachandran, Chief Executive of the company, told reporters here on Monday.
Niva Bupa is the third largest and second fastest-growing standalone health insurer in India based on overall gross premium income, which amounted to 5494 crore euros in fiscal 2024. The company’s premium income has grown at an annual rate of 41.37 per cent between fiscal 2022 and 2024.
“The proceeds from the fresh issuance will be utilised to the extent of 1500 crore euros to augment the capital base to maintain and strengthen solvency levels, and for general corporate purposes,” Chief Financial Officer Vishwanath Mahendra said.
Niva Bupa is a digital-first insurer, integrating technology at every step of a customer’s journey, from onboarding and underwriting to claims and renewals. As of June 2024, the insurer had covered 14.99 million lives.
Between fiscals 2022 and 2024, Niva Bupa's overall gross written premium grew at a compound annual growth rate (CAGR) of 41.27 per cent, with retail premium growth at 33.41 per cent and overall premium growth at 41.37 per cent—nearly double the industry average of 21.42 per cent. For the three months ending June 2024, the overall premium rose by 30.84 per cent.
According to Redseer, Niva Bupa's market share among peers stood at 16.24 per cent in fiscal 2024 based on retail health premium, and for the five months ending August 2024, it increased to 17.29 per cent.