Niva Bupa Health Insurance IPO Open, Listing and Financial Performance

Niva Bupa Health Insurance IPO will open on November 7, 2024, and close on November 11, 2024. Niva Bupa Health Insurance Company Limited was founded in 2008 and is a standalone health insurance company mainly focused on the retail health market. Let’s find out all the Niva Bupa Health Insurance IPO details, financials, and risk factors.

Niva Bupa Health Insurance IPO Date 2024

The important dates related to the Niva Bupa Health Insurance IPO are:

• Bidding Opening Date: November 7, 2024
• Bidding Closing Date: November 11, 2024
• Allotment Date: November 12, 2024
• Initiation of Refunds (in case of less or no allotment): November 13, 2024
• Shares Credited to Your Demat Account: November 13, 2024
• IPO Listing Date: November 14, 2024
• Listing on Exchange: NSE and BSE

Niva Bupa Health Insurance IPO Details

Its total issue size is ₹2,200 crores including both the fresh issue and offer for sale (OFS) component.

Here are the key details of Niva Bupa Health Insurance Company Limited IPO:

• Niva Bupa Health Insurance IPO Price Band: ₹70 to ₹74 per share
• Face Value: ₹10 per share
• Lot Size: 200 Shares
• Total Issue Size and Amount: 29,72,97,297 shares (amounting to ₹2,200 crores)
• Fresh Issue Size and Amount: 10,81,08,108 shares (amounting to ₹800 crores)
• OFS Size and Amount: 18,91,89,189 shares of ₹10 each (amounting to ₹1,400 crores)

Niva Bupa Health Insurance IPO Proceeds Usage

Niva Bupa Health Insurance Company Limited is planning to use the net proceeds for the following purposes:

• ₹800 crores for increasing capital base in order to maintain and improve the solvency levels
• General corporate purposes

Niva Bupa Health Insurance IPO Reservations

Niva Bupa Health Insurance IPO reservations to different investors are:

• For QIBs: Not less than 75% of the offer
• For NIIs: Not more than 15% of the offer
• For Retail Investors: Not more than 10% of the offer

Niva Bupa Health Insurance IPO Lot Size

Niva Bupa Health Insurance IPO lot size is 200 shares, wherein bidding can be done in further multiples. The minimum and maximum of the lot size that each category of investor can apply in this IPO are:

Applicant Type	Lot Size	Shares	Amount (in ₹)
Retail (Min)	1	200	14,800
Retail (Max)	13	2,600	1,92,400
S-HNI (Min)	14	2,800	2,07,200
S-HNI (Max)	67	13,400	9,91,600
B-HNI (Min)	68	13,600	10,06,400

Niva Bupa Health Insurance IPO Promoter Holding

The promoters of Niva Bupa Health Insurance are:

• Bupa Singapore Holdings Private Limited
• Fettle Tone LLP
• Bupa Investments Overseas Limited

Bupa Singapore Holdings Private Limited and Fettle Tone LLP will sell the shares worth ₹350 crores and ₹1,050 crores, respectively.

Niva Bupa Health Insurance Company Limited: Company Overview

Niva Bupa Health Insurance is the third largest and second fastest-growing standalone health insurer (SAHI) with a total GDPI (Gross Direct Premium Income) of ₹5,494.42 crores in FY24. From FY22 to FY24, the overall health GDPI grew at 41.37% which is almost double of the industry’s average. Along with health insurance products, the company also offers personal accident and travel insurance products.

From FY22 to FY24, the overall GWP (Gross Written Premium) grew at a CAGR of 41.27%, while the GWP from the retail health business grew at 33.41%. As of August 2024, Niva Bupa Health Insurance had a market share of 17.29% in India’s SAHI market. The network of hospitals rose to 10,426 as on June 30, 2024 from 10,059 as on June 30, 2023.

The key strengths of the company are a diverse product suite for customers, technology-led customer servicing, Bupa Group parentage, and a multi-channel diversified pan-India distribution network.

Niva Bupa Health Insurance: Financial Metrics

Niva Bupa Health Insurance’s key financials for Q1 FY25 and Q1 FY24 are as follows:

Particulars	June 30, 2024	June 30, 2023	YoY Change
Retail Health GWP	990.57	750.48	31.99%
Gross Written Premium	1,464.18	1,119.04	30.84%
Net Written Premium	1,151.60	885.06	30.12%
Premiums Earned (Net)	1,018.02	743.58	36.91%
Assets Under Management	5,674.44	3,737.55	51.82%
Net Worth	2,031.77	957.82	112.12%
Total Income	1,124.90	806.17	39.54%
Profit After Tax	-18.82	-72.20	-73.93%

*(in ₹ crores)

• In the Q1 FY25 (for the April-June 2024 quarter), the company’s retail health GWP (Gross Written Premium) grew by 31.99% YoY and the total GWP also rose by 30.84%.
• AUM has grown by 51.82% YoY and net worth also increased by 112.12% YoY in Q1 FY25.
• The total income increased by 39.54% YoY and losses were down by 73.93% YoY in the Q1 FY25.

Peer Analysis of Niva Bupa Health Insurance

The comparison of Niva Bupa Health Insurance Company Limited’s performance with its peers in the same industry is as follows:

Particulars	Niva Bupa Health Insurance Company	Star Health and Allied Insurance Company	ICICI Lombard General Insurance Company	The New India Assurance Company
Retail Health Market Share	9.88%	30.91%	2.92%	7.39%
Retention Ratio	78.65%	91.20%	67.59%	81.24%
Expense Ratio	42.05%	31.58%	28.28%	20.08%
Combined ratio	106.08%	99.15%	102.32%	116.06%
Solvency Ratio (times)	2.39	2.29	2.56	1.83
Claim Settlement Ratio	93.21%	85.56%	89.35%	98.52%

*(For Q1 FY25 ending)

• Niva Bupa holds a market share of around 10% in the retail health market as on June 30, 2024.
• The retention ratio is more than 75% indicating a loyal customer base.
• The expense ratio is more than 40% (highest among the peers) indicating the company is spending a lot out of the premium earnings.
• The combined ratio is more than 100% highlighting that Niva Bupa is paying more claims than the premiums received.
• The solvency ratio is in line with the industry levels indicating better health to manage debt obligations.
• The claim settlement ratio is more than 90% which is a metric of the number of claims settled in a period as compared to the claims received.

Risk Factors in Niva Bupa Health Insurance Company Limited

The risk factors that the Niva Bupa Health Insurance is exposed to are as follows:

1. Any lag in accurately measuring the medical expenses or the frequency of claims can impact the cash flows and financial condition.
2. A downfall in the demand for health insurance products may affect the sales and the company’s profitability.
3. Failure to implement the product development strategy as planned might impact the business.
4. Regulatory and statutory actions from the IRDAI on the company or distributors may hamper the reputation and financial condition.
5. Incurred losses in the FY22, and April-June 2023 and 2024 quarters might affect the price of equity shares.
6. Delays in the settlement of claims can lead to customer dissatisfaction or any regulatory actions.

Niva Bupa Health Insurance Company Limited IPO Contact Information

For inquiries related to the Niva Bupa Health Insurance IPO details, you can contact at the following places:

• Registered Office Address: C-98, 1st Floor, Lajpat Nagar, Part 1, South Delhi, New Delhi – 110 024, Delhi, India
• Email: Investor@nivabupa.com
• Company Website: https://www.nivabupa.com/

Niva Bupa Health Insurance IPO Registrar Details:

• Registrar Name: KFin Technologies Limited
• Phone: 91 40 6716 2222
• Email: nivabupa.ipo@kfintech.com

For all the insights on Niva Bupa Health Insurance IPO and detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels. Take smart decisions and apply for this IPO easily on the SMC ACE App by opening demat account now.

FAQs

1. What is the market share of Niva Bupa?

Niva Bupa Health Insurance Company’s market share rose to 17.29% in August 2024 from 15.58% in FY23.

2. Who is Niva Bupa owned by?

Niva Bupa Health Insurance is a joint venture of Bupa Group and Fettle Tone LLP.

3. Is Niva Bupa loss making?

Yes, Niva Bupa has made a loss of ₹18.82 crores in the April-June 2024 quarter but it earned a profit of ₹81.85 crores in the financial year 2023-24.

Reference

https://www.sebi.gov.in/filings/public-issues/nov-2024/niva-bupa-health-insurance-company-limited-rhp_88189.html

Author: All Content is verified by SMC Global Securities.