Niva Bupa Health Insurance, backed by private equity firm True North (formerly Max Bupa), has received final approval from the Securities and Exchange Board of India (SEBI) to raise Rs 3,000 crore through an initial public offering (IPO). The health insurer, which filed its IPO papers on June 29, 2024, plans to raise Rs 800 crore through fresh equity issuance and Rs 2,200 crore via an offer for sale (OFS). Of the OFS, Bupa Singapore Holdings will sell shares worth Rs 320 crore, while Fettle Tone will divest up to Rs 1,880 crore worth of shares.
Niva Bupa intends to allocate ₹625 crore from the fresh issue towards strengthening its capital base and improving its solvency levels. The remaining funds will be used for general corporate purposes.
In FY24, Niva Bupa achieved a gross direct written premium (GDPI) of Rs 5,499.43 crore. The company holds a 16.24 per cent market share in the Indian standalone health insurer (SAHI) market and is ranked as the third largest and second fastest-growing SAHI based on health GDPI, growing at a compound annual growth rate (CAGR) of 41.37 per cent from fiscal 2022 to 2024.
Niva Bupa’s overall gross written premium (GWP) also saw a substantial increase, growing at a CAGR of 41.27 per cent between fiscal 2022 and 2024, with retail health GWP rising at a CAGR of 33.41 per cent. The company has adopted a "digital-first" approach, integrating technology across customer onboarding, underwriting, claims, and renewals, to streamline operations and enhance customer experience.
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