Niva Bupa Health Insurance Company Ltd IPO

Retail and HNI Applications

The retail portion of the Niva Bupa Health Insurance Company Limited IPO consists of not less than 2, 97, 29729 equity shares of face value of ₹10. Not less than 10% of the net offer is for retail individual bidders

Niva Bupa Health Insurance Company Limited IPO Key Points

Objectives of the IPO:

The net proceeds are proposed to be deployed by FY2024-25 towards augmentation of the company’s capital base to maintain and strengthen our solvency levels.

If the funds are not utilised as per the proposed plan, it would be used in the subsequent year.

Subscription Details:

Qualified Institutional Bidder: 75%

Non-Institutional Bidder: 15%

Retail: 10%

Anchor Investors:

The anchor investor bid opens and ends on Nov 6, 2024. The company may allocate up to 60% of the QIB portion to anchor investors, out of which one third will be allocated to Mutual Funds.

Potential benefits for Investors:

By investing in Niva Bupa, one gets to be a part of a group that has spread its wings across the globe and whose profitability and revenues have leap frogged in the last year, thus ensuring steady growth in the future.

By investing in Niva Bupa health insurance company, one becomes a part of a company that is employing the latest technology to cater to varied groups of customers and which enjoys the research capabilities and support of the global conglomerate that is the Niva Bupa Group.

Book running lead managers:

ICICI Securities Limited

Morgan Stanley India Company Private Limited

Kotak Mahindra Capital Company Limited

Axis Capital Limited

HDFC Bank Limited

Motilal Oswal Investment Advisors

Promoters of Niva Bupa Health Insurance Company Limited

Bupa Singapore Holdings Pte Ltd. (Bupa Singapore)

Bupa Investment Overseas Limited

Fettle tone LLP

Niva Bupa Health Insurance Company Limited IPO Risk Factors

• As a significant portion of our business is generated from the health insurance line of business, any adverse changes to the demand for health insurance products and the retail health insurance sector may affect the sale of our health insurance products and in turn our business and profitability.
• The company is subject to extensive supervision and regulatory inspections (onsite and offsite, thematic or otherwise) by IRDAI and any regulatory and statutory actions against us or our distributors could cause us reputational harm and have a material adverse effect on our business, financial condition, cash flows, results of operations and prospects.
• The company is dependent on intermediated distribution channels, particularly individual agents, corporate agents and brokers, and if they are unable to develop and grow their network of distributors or attract, retain and incentivize their distributors, it can hurt their business.

Key Strategies of Niva Bupa Health Insurance Company Limited

• Continue to grow their product portfolio to serve the needs of customers, expand their partnerships with Network Hospitals, and further develop their healthcare ecosystem.
• Continue to invest in technology and analytics to facilitate the sales and servicing of our products
• Deepen culture of sustainability and “doing the right thing” to create a sustainable health franchise for future generations

Conclusion

Overall, Niva Bupa Health Isnurance Company is on an upward trajectory considering its profits and revenues despite high competition in the sector speaks a lot about the company. However, how it adjusts to future regulatory changes will determine its future growth. To know if investing in Niva Bupa Health Insurance Company is worth it or not, ensure you do your homework.