Investors will have an opportunity to invest in Niva Bupa Health Insurance Company Limited's Rs 2,200 crore IPO. Previously the company known as Max Bupa Health Insurance Company, the IPO will be open for subscription from November 7 to November 11. The company has set a price band of Rs 70-74 per share. Anchor investors can place bids on November 6, a day before the IPO opens.
Initially, the IPO was planned to raise Rs 3,000 crore, but this has been reduced. The offering will include the issuance of new equity shares worth Rs 800 crore, while promoters will sell shares worth Rs 1,400 crore under the offer for sale (OFS). Fatal Tone LLP plans to offload shares worth Rs 1,050 crore and Bupa Singapore Holdings Pvt Ltd will sell shares worth Rs 350 crore.
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In this issue, 75% of the shares have been reserved for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors. Currently, Bupa Singapore Holdings Pvt Ltd holds a 62.19% stake, while Fatal Tone LLP holds 26.8% in the company.
The funds raised from the IPO will be used to strengthen the company's capital base and improve its solvency level. A portion of the proceeds will also be allocated for general corporate purposes. This marks the second IPO by an independent health insurance company, following Star Health and Allied Insurance Company. The IPO is being managed by ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors. The shares are set to be listed on both BSE and NSE.