Niva Bupa, an India-based well being insurer, is reportedly gearing as much as elevate $360m (Rs3bn) by way of an preliminary public providing (IPO), probably valuing the corporate at roughly $2.5bn.
This transfer comes amidst a surge within the inventory market, with the corporate seeking to capitalise on the flourishing IPO local weather in India, Reuters reported.
The report famous that British United Provident Affiliation (Bupa), which holds a 63% stake in Niva Bupa, is about to promote a stake valued at as much as $38m.
Moreover, the Indian non-public fairness firm True North goals to dump shares value as much as $225m, as per IPO particulars.
The corporate is anticipated to file for IPO approval with India’s market regulator throughout the subsequent week, sources have knowledgeable.
Nonetheless, Niva Bupa, together with Bupa UK and True North, have declined Reuters’ request for a touch upon the matter.
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Of the entire $360m providing, Niva Bupa intends to generate $96m by way of the issuance of latest shares.
The remaining $264m will come from the sale of shares held by present buyers.
The funds raised from the IPO are earmarked for bolstering Niva Bupa’s stability sheet and masking operational bills.
Reuters famous that Morgan Stanley, together with Indian banks similar to Kotak, Axis, ICICI, HDFC, and Motilal Oswal, have been appointed for the IPO, though they haven’t commented on the event.
India, regardless of having one of many lowest insurance coverage penetration charges amongst giant nations, is witnessing fast development in insurance coverage adoption, notably post-Covid, which has heightened danger consciousness, as said in Niva Bupa’s 2022 annual report.
At current, Niva Bupa has established partnerships with over 10,000 hospitals throughout the nation.
Nonetheless, it stays a smaller entity within the insurance coverage market, with a 1.8% market share, in a sector led by bigger insurance coverage ventures similar to Allianz and Generali.
