Niva Bupa Health Insurance sets IPO price band at Rs 70-74 for Rs 2,200 crore offering

Niva Bupa Health Insurance Company Ltd (previously known as Max Bupa Health Insurance Company) on Monday announced a price band of Rs 70-74 per share for its Rs 2,200 crore IPO, which will be open for bids from November 7 to November 11. Anchor investors can bid for one day on November 6.
The issue allocation includes 75 per cent for qualified institutional buyers, 15 per cent for non-institutional buyers, and 10 per cent for retail investors.
The IPO, which has been reduced from its earlier issue size of Rs 3,000 crore, comprises fresh equity shares worth Rs 800 crore and an offer for sale of Rs 1,400 crore by promoters. In the Offer For Sale (OFS), Fettle Tone LLP plans to sell shares worth Rs 1,050 crore, whilst Bupa Singapore Holdings Pte Ltd will sell shares worth Rs 350 crore.
Currently, Bupa Singapore Holdings Pte possesses 62.19 per cent ownership, and Fettle Tone LLP holds 26.8 per cent stake in the insurance company.
The fresh issuance proceeds will be used to strengthen the company’s capital base and solvency levels, with a portion allocated for general corporate purposes.
Following Star Health & Allied Insurance Company, this marks the second standalone health insurer pursuing an IPO.
The IPO’s book-running lead managers include ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank and Motilal Oswal Investment Advisors. The shares are planned to be listed on both BSE and NSE.