India’s Niva Bupa Health Insurance Company (Niva Bupa) is preparing for an IPO, with the aim of garnering $361.54m (Rs30.04bn), reported the the Economic Times (ET), citing sources.
The health insurer is a joint venture (JV) between UK-based British United Provident Association (Bupa) and Indian private equity investor True North.
Sources told the publication that Niva Bupa has hired investment bankers such as Kotak Mahindra Capital, ICICI Securities and Morgan Stanley to manage the IPO.
Currently, Bupa holds a 63% stake in the JV, while True North has a 28% share.
The remaining ownership is split between other financial investors and employees, holding 7% and 2%, respectively.
The IPO will include both fresh issuances and an offer for sale, although details of the proportions have not been disclosed.
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One of the sources was quoted by the publication as saying: “The health insurer has enlisted the services of three bankers for its Rs30bn public issue, primarily aimed at augmenting equity capital to ensure the solvency ratio remains above the regulatory requirements.”
According to ET, Niva Bupa is among the top stand-alone health insurance providers in the country and a key player in the overall health insurance market in India.
The company’s product portfolio includes critical illness, personal accident and overseas medical insurance policies.
An email seeking Niva Bupa’s comments on the matter did not draw a response.
In September 2023, True North agreed to sell a 20% stake in Niva Bupa to Bupa for approximately Rs27bn.
This stake was originally acquired by True North from Max in 2019.