All You Need to Know About Niva Bupa Health Insurance Company IPO

All You Need to Know About Niva Bupa Health Insurance Company IPO

The Niva Bupa Health Insurance IPO is set to open for subscription on November 7, 2024, offering investors an opportunity to invest in one of India’s prominent health insurance providers. But before investing in the Niva Bupa Health Insurance IPO, here's everything you need to know about the company.

1. Established Brand Presence

Niva Bupa Health Insurance is a joint venture between the renowned Bupa Group and Fettle Tone LLP, making it a trusted name in health insurance in India.

2. Strong Market Growth

The company has grown its Gross Written Premium (GWP) at a CAGR of 41.27% from Fiscal Year 2022 to 2024, showcasing its rapid expansion and market potential.

3. Large Customer Base

As of March 2024, Niva Bupa insures 14.73 million active lives, highlighting a solid foundation of loyal policyholders.

4. Diverse Product Offerings

Niva Bupa offers comprehensive insurance solutions across retail and group insurance categories, appealing to a broad range of customers from individuals to corporate clients.

5. Extensive Geographic Reach

With a presence in 22 states and four union territories, Niva Bupa has established a widespread footprint in India, enhancing its accessibility and brand recognition.

6. Digital Innovation

The company leverages technology such as machine learning for lead scoring and a real-time CRM dashboard to engage customers effectively, indicating a forward-looking approach to service delivery.

7. Efficient Sales Force

Niva Bupa’s telemarketing team of 410 employees is supported by technology to improve customer interactions and conversions, signaling operational efficiency.

8. Strong Promoter Backing

The company is backed by Bupa Singapore Holdings Pte. Ltd. and Bupa Investments Overseas Limited, with a pre-IPO shareholding of 62.27%, ensuring robust support from established players.

9. Favorable Industry Tailwinds

With increasing awareness of health insurance and the need for financial protection, the health insurance sector is expected to see continued growth in India, creating a favorable environment for Niva Bupa.

About Niva Bupa Health Insurance

Incorporated in 2008, Niva Bupa Health Insurance Company Limited is a joint venture between the Bupa Group and Fettle Tone LLP. It provides a holistic health insurance ecosystem with a mobile application and website, allowing customers easy access to various insurance products. The company’s offerings are divided into retail products for individuals and families, as well as group products for employers and employees, catering to the diverse needs of its customers.

Key Details of the IPO

  • IPO Date: November 7, 2024, to November 11, 2024
  • Face Value: ?10 per share
  • Price Band: ?70 to ?74 per share
  • Lot Size: 200 shares
  • Total Issue Size: 297,297,297 shares (aggregating up to ?2,200.00 Cr)
  • Fresh Issue: 108,108,108 shares (aggregating up to ?800.00 Cr)
  • Offer for Sales: 189,189,189 shares of ?10 (aggregating up to ?1,400.00 Cr).

Financials of Niva Bupa Health Insurance

  • Assets: ?6,542.06 crore
  • Revenue: ?1,124.90 crore
  • Profit After Tax: ?-18.82 crore
  • Net Worth: ?2,031.77 crore
  • Reserves and Surplus: ?1,282.44 crore

Objectives of the IPO

The company proposes to utilise the Net Proceeds towards the following objects:

  • Augmentation of its capital base to strengthen solvency levels and
  • General corporate purposes

Conclusion

The Niva Bupa Health Insurance IPO presents an appealing opportunity for investors looking to enter the health insurance sector with a trusted, fast-growing player. Backed by a well-known promoter group, strong financial performance, and ambitious growth plans, Niva Bupa is well-positioned for future success.


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