Niva Bupa Health Insurance IPO is a book-built issue aiming to raise ₹2,200 crores, comprised of a fresh issue of 10.81 crore shares worth ₹800 crores and an offer for sale of 18.92 crore shares totalling ₹1,400 crores. The IPO opens for subscription on November 7, 2024, and will close on November 11, 2024, with allotments expected to be finalised on November 12, 2024.
The shares will be listed on the BSE and NSE, with a tentative listing date set for November 14, 2024. The price band is established at ₹70 to ₹74 per share, requiring a minimum investment of ₹14,800 for retail investors, based on a lot size of 200 shares.
For small non-institutional investors (sNII) and big non-institutional investors (bNII), the minimum investments are ₹207,200 and ₹1,006,400, respectively. ICICI Securities, Morgan Stanley, and others serve as lead managers, with Kfin Technologies as the registrar.
Industry Outlook:
- The Indian health insurance market is projected to grow to ₹89.70 billion by 2024, with a CAGR of 6.74%, reaching ₹124.30 billion by 2029.
- Average per capita spending in India's health insurance sector is estimated at ₹62.21 in 2024, reflecting increased consumer investment in healthcare coverage and services.
Niva Bupa Health Insurance IPO Objectives
Niva Bupa Health Insurance Company Limited plans to allocate the net proceeds from the issuance to the following purposes:
- Augmentation of its capital base to strengthen solvency levels and
- General corporate purposes
About Niva Bupa Health Insurance Company Limited
Incorporated in 2008, Niva Bupa Health Insurance Company Limited is a joint venture between the Bupa Group and Fettle Tone LLP, specialising in health insurance. The company delivers a comprehensive health ecosystem, enhancing customer experience through its Niva Bupa Health mobile app and website.
Niva Bupa’s offerings include retail products for individuals and families, as well as group products for employers and employees. As of June 30, 2024, the company insured 14.99 million active lives across 22 states and four union territories in India. The company experienced significant growth, with gross written premium (GWP) increasing at a CAGR of 41.27% from Fiscal Year 2022 to Fiscal Year 2024, while retail health GWP rose by 33.41%.
Retail health products constituted 68.47% of Niva Bupa's overall GWP for Fiscal 2024, reflecting a strategic focus on this promising segment, characterised by higher premiums and renewal rates.
How to Check the Allotment Status of the Niva Bupa Health Insurance IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How to apply for Niva Bupa Health Insurance IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Niva Bupa Health Insurance IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Niva Bupa Health Insurance IPO
- Registered office: C-98, 1st Floor, Lajpat Nagar, Part 1, South Delhi, New Delhi – 110 024, Delhi, India
- Phone: +91 124 635 4900
- E-mail: Investor@nivabupa.com
Application Details of Niva Bupa Health Insurance IPO
| Category | Price Range (₹) | Maximum Application Amount (₹) |
|---|---|---|
| General Investors | 70 - 74 | 2 lakh |
| High Net-Worth Individuals (HNIs) | 70 - 74 | 2 - 5 lakh |
For the Niva Bupa Health Insurance IPO, eligible participants include General Investors and High net-worth individuals, with specific limits on application amounts for each category.
Niva Bupa Health Insurance IPO Reservation
| Investor Category | Percentage of Shares Offered from Net Issue |
|---|---|
| Qualified Institutional Buyers (QIB) | Not less than 75% of the Net Issue |
| Retail Investors | Not less than 10% of the Net Issue |
| Non-Institutional Investors (NII/HNI) | Not more than 15.00% of the Net Issue |
This table outlines the share allocation for different investor categories in the Niva Bupa Health Insurance IPO.
Niva Bupa Health Insurance IPO Promoter Holding
Niva Bupa Health Insurance Company is the promoter, with 62.27% ownership before the issue and a reduced stake after the IPO is yet to be announced.
| Promoter | Niva Bupa Health Insurance Company |
|---|---|
| Pre-IPO Shareholding | 62.27% |
| Post-IPO Shareholding | To be announced |
Niva Bupa Health Insurance IPO Registrar and Lead Manager(s)
Niva Bupa Health Insurance IPO Lead Managers:
- 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
Registrar for Niva Bupa Health Insurance IPO:
Kfin Technologies Limited- Contact Number: 04067162222, 04079611000
- Email Address: nivabupa.ipo@kfintech.com
- Website: Niva Bupa Health Insurance IPO Registrar
IPO Financials
| Particulars | As at and for the quarter ended June 30, 2024 | As at and for the Year ended March 31, 2024 | As at and for the quarter ended June 30, 2023 |
|---|---|---|---|
| Total Income (in ₹ million) | 11,248.99 | 41,186.31 | 8,061.68 |
| Retail Health GWP (in ₹ million) | 9,905.74 | 38,397.34 | 7,504.77 |
| Retail Health Market Share (%) | 9.88 | 9.10 | 8.91 |
| Assets Under Management (in ₹ million) | 56,744.43 | 54,582.31 | 37,375.54 |
| Profit After Tax (PAT) (in ₹ million) | (188.21) | 818.52 | (721.98) |
| Total Borrowings (in ₹ million) | 2,500.00 | 2,500.00 | 2,500.00 |
| Net Worth (in ₹ million) | 20,317.72 | 20,495.90 | 9,578.17 |
| Return on Net Worth (%) | (0.92)% | 5.68% | (8.07)% |
| Claim Settlement Ratio (%) | 93.21% | 91.93% | 92.52% |
| Earning Per Share (EPS)-in absolute ₹ | (0.11) | 0.51 | (0.48) |
Know before investing
Strengths
6Third largest SAHI with 17.29% market share (Fiscal 2025).
Fast-growing GWP with CAGR of 41.27% from Fiscal 2022.
High-margin products contribute to 73.66% of policies sold.
Low Claims Ratio of 59.02% (Fiscal 2024), demonstrating risk prudence.
Robust digital platform with 99.95% of policies sold online.
Strong individual agent network growth to 152,436 as of 2024.
Risks
6Claims Ratio risk, currently at 64.03%, could increase unpredictably.
Heavy reliance on intermediated channels, with 32.07% from individual agents.
IRDAI inspections observed 33 compliance issues in Fiscal 2021.
Profitability risk with ₹1,965.25 million loss in Fiscal 2022.
High Expense Ratio of 39.77% in Fiscal 2024 impacts profitability.
Dependency on health insurance, 97.98% of GWP in Fiscal 2024.
Peer Comparison
| Name of the Company | Face Value (₹ per share) | Net Profit (₹ million) | Net Worth (₹ million) | RoNW (%) |
|---|---|---|---|---|
| Niva Bupa Health Insurance Company Limited | 10 | 818.52 | 20,495.90 | 5.68% |
| Star Health and Allied Insurance Company Ltd | 10 | 8,450.10 | 63,416.20 | 14.35% |
| ICICI Lombard General Insurance Company Ltd | 10 | 19,185.90 | 119,597.80 | 17.17% |
| The New India Assurance Company Ltd | 5 | 10,911.20 | 218,443.30 | 5.13% |
