Niva Bupa Health Insurance Company will launch its Rs 2,200 crore initial public offering (IO) on November 7, with a price band of Rs 70-74 per share.

The anchor book will open on November 6, while the public offer will close on November 11. The basis of allotment is scheduled for November 12, with shares to be credited to eligible investors" demat accounts by November 13. The stock is expected to list on exchanges on November 14.

The IPO consists of a fresh equity issue worth Rs 800 crore and an offer-for-sale (OFS) of Rs 1,400 crore, bringing the total issue size to Rs 2,200 crore. Under the OFS, Bupa Singapore Holdings and Fettle Tone will offload part of their stakes.

The company proposes to utilise the net proceeds from the fresh issue towards augmentation of its capital base to strengthen solvency levels and for general corporate purposes.

Niva Bupa is the second standalone health insurer (SAHI) to eye at the Indian bourses through IPO, after Star Health & Allied Insurance Company. It is India's third largest and second fastest growing SAHI based on an overall Health GDPI of Rs 5,494 crore in fiscal 2024, which grew at a CAGR of 41.37% from FY 2022 to 2024. It boasts a Gross Direct Written Premium (GDPI) of Rs 5,499,43 crore in fiscal 2024.

The company uses machine learning-based algorithms and logistics regression models to identify fraudulent claims, and this has helped them drive higher success in fraud detection, and reduce investigation referrals, thereby minimizing the impact on the customer experience From FY22 to FY24, Niva Bupa's overall GWP increased at a compound annual growth rate (CAGR) of 41.27%, while its retail health GWP grew at a CAGR of 33.41%.

The company's overall health GDPI growth of 41.37% during this period is one of the highest among SAHIs and nearly double the industry's average growth rate of 21.42%. Niva Bupa has 143,074 agents, 210 physical branches across 22 states and 4 union territories in India, as of March 2024. It distributes products through 64 banks and other corporate agents, including major institutions like HDFC Bank and Axis Bank, according to the Redseer Report.

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Published on Nov 4, 2024, 09.03 AM IST