Health Insurer Niva Bupa has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offer.
The health insurer plans to raise INR30bn ($360m) via the IPO, with its shares to be listed on the two bourses, BSE and NSE.
The DRHP shows that the proposed IPO includes the fresh issuance of equity shares amounting to INR8bn and an offer for sale (OFS) of up to INR22bn by promoter Bupa Singapore Holdings Pte Ltd and an investor shareholder.
The net proceeds from the fresh issuance, amounting to INR6.25bn, will be used to strengthen the company's capital base and improve solvency levels, with the remaining funds to be allocated for general corporate purposes.
Bupa Singapore Holdings, which owns 62.27% of the health insurer, will sell shares worth INR3.2bn while the investor Fettle Tone will sell shares worth INR18.8bn. Fettle Tone has a 27.86% stake in the company.
Niva Bupa will also consider a pre-IPO placement of shares worth up to INR1.6bn, with the size of the fresh issue to be adjusted accordingly.
Niva Bupa Health Insurance Company will be the second standalone health insurer to file an IPO, following Star Health & Allied Insurance Company.
As of 31 March 2024, the company operates 210 physical branches across 22 states and four union territories in India.