New Delhi: Health insurance company Niva Bupa Health Insurance Company Limited has set the price band for its Rs 2,200 crore IPO at Rs 70-74 per share. This company was earlier known as Max Bupa Health Insurance Company. The company’s IPO will open for subscription on November 7 and bidding can be done till November 11. Anchor investors can place bids on November 6, a day before the IPO opens. The size of the IPO was earlier Rs 3,000 crore but now it has been reduced. In this, new equity shares worth Rs 800 crore will be issued while the promoter will sell shares worth Rs 1,400 crore under the offer for sale. In the OFS, Fatal Tone LLP is planning to sell shares worth Rs 1,050 crore, while Bupa Singapore Holdings Pvt Ltd is planning to sell shares worth Rs 350 crore. The issue has 75 per cent reserved for qualified institutional buyers, 15 per cent for non-institutional buyers and 10 per cent for retail investors. Currently, Bupa Singapore Holdings Pte holds 62.19 per cent stake in the company while Fatal Tone LLP holds 26.8 per cent stake in the insurance company.
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What will the company do with the money?
The company will use the funds raised from this issue to strengthen its capital base and solvency levels. A portion of this will be allocated for general corporate purposes. It is the second standalone health insurance company to launch an IPO after Star Health and Allied Insurance Company. The book-running lead managers of the IPO include ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank and Motilal Oswal Investment Advisors. There are plans to list the shares on both BSE and NSE.
Time.news Editor (TNE): Welcome to our special segment! Today, we have a fascinating topic to explore — the upcoming IPO of Niva Bupa Health Insurance Company Limited. Joining us is Dr. Anil Sharma, a financial analyst and expert in the insurance sector. Thank you for being here, Dr. Sharma!
Dr. Anil Sharma (DAS): Thank you for having me! It’s great to be here to discuss such an important development in the health insurance space.
TNE: Let’s dive right in. Niva Bupa has set its IPO price band at Rs 70-74 per share, aiming to raise around Rs 2,200 crore. How significant is this move for the company and the health insurance industry?
DAS: This IPO is quite significant, especially at a time when the demand for health insurance is growing rapidly in India. With healthcare becoming a priority for many families, Niva Bupa’s aggressive approach to raise funds shows their commitment to expanding their services and reach. It can also encourage competitors to innovate and enhance their offerings.
TNE: Interesting! Before we discuss the implications, could you share a bit about the company itself? What sets Niva Bupa apart from its competitors?
DAS: Absolutely. Niva Bupa, previously known as Max Bupa Health Insurance Company, has carved a niche for itself in the market. Its focus on customer-centric services, technology integration, and a robust claim settlement process sets it apart. They’re not just selling policies; they are building a trust-based relationship with their customers, which is crucial in the health insurance sector.
TNE: Trust is indeed vital. With the price band set between Rs 70-74 per share, what should potential investors consider before diving into this IPO?
DAS: Potential investors should conduct thorough research. They’ll want to look at Niva Bupa’s financial health, growth trajectory, and market position. Additionally, considering the overall performance of the insurance sector, especially post-pandemic, can provide valuable insights. Investing in IPOs can be risky, so understanding the business fundamentals and market dynamics is essential.
TNE: Great insights! With several health insurance providers in the market, how does Niva Bupa’s IPO impact the overall landscape of health insurance in India?
DAS: This IPO could potentially bolster the health insurance sector by increasing capital flow. As Niva Bupa raises funds, they may invest in technology to enhance customer service and streamline operations. This could ultimately benefit policyholders through better products and services. Moreover, successful IPOs can also motivate other firms to consider going public, creating a more competitive environment which is beneficial for consumers.
TNE: That’s a valuable perspective. As we see growth in health insurance, what trends do you predict will shape the industry in the coming years?
DAS: I foresee a few key trends. First, a rise in digital health solutions will provide more personalized and accessible insurance products. Next, as more young individuals prioritize health and wellness, insurers may start offering products that cater specifically to this demographic. Lastly, we may see a greater focus on mental health coverage, as societal awareness increases.
TNE: Those trends sound promising for the future of health insurance! Lastly, Dr. Sharma, what advice would you give to individuals who are considering investing in health insurance at this time?
DAS: I’d advise them to assess their specific healthcare needs, not just financially, but in terms of coverage. Choose policies that offer flexibility and comprehensive benefits. Additionally, take the time to compare different providers and read the fine print to understand exclusions and limits. A well-informed choice today can significantly impact financial security in the future.
TNE: Wise words, indeed! Thank you, Dr. Sharma, for sharing your insights with us today. The upcoming IPO of Niva Bupa certainly adds excitement to the health insurance sector.
DAS: Thank you for having me! I look forward to seeing how this unfolds in the industry.
TNE: And thank you to our viewers for tuning in. Stay informed and take charge of your health and finances! Until next time!