MUMBAI: The markets regulator Sebi has approved the IPO filings by Niva Bupa Health Insurance (Rs 3,000 crore) and Paras Healthcare (400 crore plus offer for sale).
Global private equity firm True North-backed Niva Bupa Health Insurance aims to raise Rs 3,000 crore through the initial public offering, which is a combination of fresh issuance worth Rs 800 crore, and an offer-for-sale (OFS) worth Rs 2,200 crore. Paras Healthcare, which is backed by global private equity firm Creador, comprises of fresh issue of Rs 400 crore, and an offer-for-sale of 1.49 crore equity shares, which is not quantified yet.
The regulator issued the observation letters to these prospective issuers on October 18. The issuance of observation letters means they can go ahead with their IPO plans and raise funds from the capital markets.
Niva had filed its draft red herring prospectus with the markets regulator on June 29, while Paras had done so on July 31.
In the Niva issue, the main promoter Bupa Singapore Holdings will be selling shares worth Rs 320 crore and investor Fettle Tone will sell shares worth Rs 1,880 crore through the OFS.
Niva Bupa Health is a joint venture between the English group Bupa Group and Fettle Tone.
According to the filing, Bupa Singapore Holdings holds 62.27 percent stake in Niva Bupa, and the remaining is held by public shareholders including Fettle Tone with 27.86 percent stake.
The health insurer will use proceeds from the fresh issue to augment its capital base to strengthen solvency levels, and the remainder for general corporate purposes.
Niva when listed will be the fourth health insurer to become publicly traded on the bourses after Star Health & Allied Insurance, ICICI Lombard General Insurance and New India Assurance Company.
The initial share sale of Paras Healthcare, which is backed by global private equity firm Creador, comprises fresh issue of Rs 400 crore, and an offer-for-sale of 1.49 crore equity shares.
Promoter Dharminder Kumar Nagar and investor Commelina will be selling 29.28 lakh shares and 1.2 crore shares respectively in the OFS. Commelina had acquired a stake in July 2017.
Nagar and Commelina (an affiliate of Creador) own 75.32 percent and 24.68 percent stakes respectively in the Gurugram-based healthcare provider.
Paras, which operates eight hospitals under the Paras Health brand with 2,135 beds across six states, will spend Rs 300 crore of the fresh issue proceeds to repay debt, and the remaining for general corporate purposes.
