Health insurer Niva Bupa files draft papers for Rs 3,000 crore IPO

Mumbai, July 1 – Leading health insurer Niva Bupa on Monday filed its draft red herring prospectus (DRHP) with the markets regulator Securities Exchange Board of India (SEBI) to raise about Rs 3,000 crore ($360 million) via an initial public offering (IPO).

The draft papers filed by True North-backed Niva Bupa Health Insurance Company Ltd have a fresh issue of Rs 800 crore for the public and an offer for sale (OFS) of up to Rs 2,200 crore by existing shareholders.

The OFS comprises up to Rs 320 crore shares by Bupa Singapore Holdings Pte and Rs 1,880 crore by Fettle Tone LLP.

Bupa Singapore Holdings has a 62.27 per cent stake in the health insurer while Fettle Tone LLP has a 27.86 per cent stake in the company.

Morgan Stanley India, Kotak Investment Capital, Axis Capital, ICICI Securities and HDFC Bank have been hired for the IPO, according to reports.

Niva Bupa would be the second stand-alone health insurer, after Star Health Insurance, to list on the Indian stock exchanges.

In September last year, leading private equity firm True North sold a 20 per cent stake in Niva Bupa Health Insurance to its partner Bupa for Rs 2,700 crore, taking the Indian firm’s valuation to Rs 13,500 crore.