Insurer Niva Bupa Plans $360 Million IPO

Niva Bupa, an Indian health insurer, is planning a $360 million IPO, potentially valuing the business at up to $2.5 billion. According to sources and a document seen by Reuters, the company will file papers with India's market regulator for IPO approval next week.

British United Provident Association (Bupa), which owns a 63% stake, plans to sell a small portion worth up to $38 million, while Indian private equity firm True North plans to sell up to $225 million in shares.

The IPO will raise $96 million through new shares, with $264 million from existing investors.

Funds will be used to strengthen Niva Bupa's balance sheet and cover operating expenses. The company has enlisted Morgan Stanley and Indian banks ICICI, Kotak, Axis, HDFC, and Motilal Oswal to manage the IPO.

India's IPO market is booming, attracting significant investment in both small and large companies. Earlier this month, Hyundai filed for what could be the country's largest-ever IPO.

Other companies planning IPOs include Ola Electric, FirstCry, and Bajaj Housing Finance.

India has one of the lowest insurance penetration rates among large countries, but this is increasing rapidly due to heightened risk awareness following the COVID-19 pandemic and rising healthcare costs.

Niva Bupa, with partnerships with over 10,000 hospitals, holds a market share of 1.8%.
In 2021, India allowed foreign investors to increase their stakes in local insurers to 74%.
In 2023, Bupa increased its stake in Niva Bupa by 20% to 63%.

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