Niva Bupa Health Insurance IPO next week: Date, price, key financials, peer comparison. All the details
The IPO comprises a fresh issue of equity shares worth ₹800 crore and an Offer for Sale (OFS) amounting to ₹1,400 crore, totaling ₹2,200 crore.
- Nov 2, 2024,
- Updated Nov 2, 2024 8:32 AM IST
Niva Bupa Healthcare’s initial public offering (IPO) will open for subscription from November 6, 2024, and close on November 8, 2024. The IPO comprises a fresh issue of equity shares worth ₹800 crore and an Offer for Sale (OFS) amounting to ₹1,400 crore, totaling ₹2,200 crore.
The price band for the IPO will be disclosed soon. Investors can expect listing on the BSE and NSE on November 13, 2024, with allotment finalized on November 11, 2024, and refunds processed by November 12, 2024.
Under the OFS, Bupa Singapore Holdings and Fettle Tone will partially divest their stakes. The net proceeds from the fresh issue are earmarked to enhance the company’s capital base, strengthen solvency ratios, and cover general corporate expenses.
Niva Bupa stands as India’s third-largest standalone health insurer (SAHI) and the second-fastest growing, driven by a Gross Direct Premium Income (GDPI) of ₹5,494 crore for fiscal 2024. This reflects a compound annual growth rate (CAGR) of 41.37% from FY22 to FY24, nearly double the industry average growth rate of 21.42%. The company’s retail health Gross Written Premium (GWP) grew at a CAGR of 33.41% over the same period.
The company leverages machine learning and logistic regression models to combat insurance fraud effectively. These technologies have improved fraud detection rates and minimized investigation referrals, reducing the impact on customer service.
Financially, Niva Bupa reported a revenue of ₹328.73 crore in 2024, down from ₹413.07 crore in 2023. However, profit after tax rose significantly to ₹81.85 crore in 2024, compared to ₹12.54 crore the previous year. The company’s assets also increased, standing at ₹3,232.62 crore in 2024.
Peer Group Comparison In the competitive landscape, Niva Bupa faces peers like Star Health & Allied Insurance, which has an EPS of ₹14.48, a PE ratio of 36.97, and a RoNW of 14.35%. ICICI Lombard General Insurance stands out with an EPS of ₹39.03, a higher PE ratio of 45.92, and a RoNW of 17.17%. The New India Assurance has an EPS of ₹6.77, a PE ratio of 35.23, and a RoNW of 5.13%.
Niva Bupa Healthcare IPO Details
| Event | Date/Detail |
|---|---|
| IPO Open Date | November 6, 2024 |
| IPO Close Date | November 8, 2024 |
| Basis of Allotment | November 11, 2024 |
| Refunds Initiated | November 12, 2024 |
| Credit to Demat Accounts | November 12, 2024 |
| IPO Listing Date | November 13, 2024 |
| Fresh Issue Amount | ₹800 crore |
| Offer for Sale (OFS) | ₹1,400 crore |
| Total Issue Size | ₹2,200 crore |
| IPO Listing | BSE & NSE |
Financial Performance
| Year | Revenue (₹ Crore) | Expense (₹ Crore) | Profit After Tax (₹ Crore) | Assets (₹ Crore) |
|---|---|---|---|---|
| 2022 | 90.48 | 287.01 | 196.53 | 1,782.01 |
| 2023 | 413.07 | 400.53 | 12.54 | 2,091.89 |
| 2024 | 328.73 | 246.87 | 81.85 | 3,232.62 |
Key Growth Metrics (FY22 to FY24)
| Metric | Value |
|---|---|
| Overall GDPI CAGR | 41.37% |
| Retail Health GWP CAGR | 33.41% |
| Industry Average Growth Rate | 21.42% |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV (₹) | Income (₹ Crore) |
|---|---|---|---|---|---|
| Star Health & Allied Insurance | 14.48 | 36.97 | 14.35 | 108.35 | 8,450.10 |
| ICICI Lombard General Insurance | 39.03 | 45.92 | 17.17 | 242.75 | 19,185.90 |
| New India Assurance | 6.77 | 35.23 | 5.13 | 132.55 | 10,911.20 |
Niva Bupa has an extensive distribution network, comprising 143,074 agents and 210 branches across 22 states and four union territories as of March 2024. The company also partners with 64 banks and corporate agents, including HDFC Bank and Axis Bank.
The IPO’s book-running lead managers include ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors, with KFin Technologies acting as the registrar.
Niva Bupa Healthcare’s initial public offering (IPO) will open for subscription from November 6, 2024, and close on November 8, 2024. The IPO comprises a fresh issue of equity shares worth ₹800 crore and an Offer for Sale (OFS) amounting to ₹1,400 crore, totaling ₹2,200 crore.
The price band for the IPO will be disclosed soon. Investors can expect listing on the BSE and NSE on November 13, 2024, with allotment finalized on November 11, 2024, and refunds processed by November 12, 2024.
Under the OFS, Bupa Singapore Holdings and Fettle Tone will partially divest their stakes. The net proceeds from the fresh issue are earmarked to enhance the company’s capital base, strengthen solvency ratios, and cover general corporate expenses.
Niva Bupa stands as India’s third-largest standalone health insurer (SAHI) and the second-fastest growing, driven by a Gross Direct Premium Income (GDPI) of ₹5,494 crore for fiscal 2024. This reflects a compound annual growth rate (CAGR) of 41.37% from FY22 to FY24, nearly double the industry average growth rate of 21.42%. The company’s retail health Gross Written Premium (GWP) grew at a CAGR of 33.41% over the same period.
The company leverages machine learning and logistic regression models to combat insurance fraud effectively. These technologies have improved fraud detection rates and minimized investigation referrals, reducing the impact on customer service.
Financially, Niva Bupa reported a revenue of ₹328.73 crore in 2024, down from ₹413.07 crore in 2023. However, profit after tax rose significantly to ₹81.85 crore in 2024, compared to ₹12.54 crore the previous year. The company’s assets also increased, standing at ₹3,232.62 crore in 2024.
Peer Group Comparison In the competitive landscape, Niva Bupa faces peers like Star Health & Allied Insurance, which has an EPS of ₹14.48, a PE ratio of 36.97, and a RoNW of 14.35%. ICICI Lombard General Insurance stands out with an EPS of ₹39.03, a higher PE ratio of 45.92, and a RoNW of 17.17%. The New India Assurance has an EPS of ₹6.77, a PE ratio of 35.23, and a RoNW of 5.13%.
Niva Bupa Healthcare IPO Details
| Event | Date/Detail |
|---|---|
| IPO Open Date | November 6, 2024 |
| IPO Close Date | November 8, 2024 |
| Basis of Allotment | November 11, 2024 |
| Refunds Initiated | November 12, 2024 |
| Credit to Demat Accounts | November 12, 2024 |
| IPO Listing Date | November 13, 2024 |
| Fresh Issue Amount | ₹800 crore |
| Offer for Sale (OFS) | ₹1,400 crore |
| Total Issue Size | ₹2,200 crore |
| IPO Listing | BSE & NSE |
Financial Performance
| Year | Revenue (₹ Crore) | Expense (₹ Crore) | Profit After Tax (₹ Crore) | Assets (₹ Crore) |
|---|---|---|---|---|
| 2022 | 90.48 | 287.01 | 196.53 | 1,782.01 |
| 2023 | 413.07 | 400.53 | 12.54 | 2,091.89 |
| 2024 | 328.73 | 246.87 | 81.85 | 3,232.62 |
Key Growth Metrics (FY22 to FY24)
| Metric | Value |
|---|---|
| Overall GDPI CAGR | 41.37% |
| Retail Health GWP CAGR | 33.41% |
| Industry Average Growth Rate | 21.42% |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV (₹) | Income (₹ Crore) |
|---|---|---|---|---|---|
| Star Health & Allied Insurance | 14.48 | 36.97 | 14.35 | 108.35 | 8,450.10 |
| ICICI Lombard General Insurance | 39.03 | 45.92 | 17.17 | 242.75 | 19,185.90 |
| New India Assurance | 6.77 | 35.23 | 5.13 | 132.55 | 10,911.20 |
Niva Bupa has an extensive distribution network, comprising 143,074 agents and 210 branches across 22 states and four union territories as of March 2024. The company also partners with 64 banks and corporate agents, including HDFC Bank and Axis Bank.
The IPO’s book-running lead managers include ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors, with KFin Technologies acting as the registrar.