Niva Bupa Health Insurance Company and Paras Healthcare have received regulatory approval from the Securities and Exchange Board of India (SEBI) to move forward with their Initial Public Offerings (IPOs). The approvals, granted on October 18, allow both companies to raise capital through a mix of fresh equity and Offer for Sale (OFS) components.
Niva Bupa aims to raise Rs 3,000 crore through its IPO, comprising Rs 800 crore in fresh equity shares and Rs 2,200 crore in shares offered by existing shareholders. Notably, Fettle Tone LLP will sell shares worth Rs 880 crore, while Bupa Singapore Holdings Pte Ltd, which holds a 62.27 per cent stake in Niva Bupa, plans to offload shares valued at Rs 320 crore. Bupa, a UK-based international healthcare firm, holds a majority stake in Niva Bupa through Bupa Singapore, while Fettle Tone owns 27.86 per cent.
Proceeds from the fresh issue, amounting to Rs 625 crore, will be used to boost Niva Bupa’s capital base and strengthen its solvency levels, with the rest earmarked for general corporate purposes. Niva Bupa will become the second standalone health insurer in India to go public, following the listing of Star Health & Allied Insurance Company.
Paras Healthcare’s IPO is set to raise Rs 400 crore, with a portion being new equity and the rest through an OFS of up to 1.5 crore shares. Promoter Dharminder Kumar Nagar will sell around 29.28 lakh shares, while investor Commelina will divest 1.2 crore shares.
The funds raised from Paras Healthcare’s IPO will be used for debt repayment, investments in subsidiaries, and general corporate purposes. The company operates eight hospitals under the ‘Paras Health’ brand across five states and one union territory, with a total capacity of 2,135 beds as of March 2024.
Both companies filed their draft red herring prospectuses with SEBI between July and August this year. With the approvals in place, they are now set to embark on their IPO journeys, seeking to strengthen their financial positions and expand their operations.
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