Niva Bupa Health Insurance Co. plans to file its initial public offering of Rs 3,000 crore by June, according to people with knowledge of the matter. It is likely to be a mix of fresh issue and an offer-for-sale.
The health insurer will file its draft red herring prospectus with the market regulator in a month or so, the people said. The private equity firm True North will pare its stake through the offer-for-sale.
Niva Bupa Health Insurance (formerly known as Max Bupa Health Insurance Co.) is a joint venture between Fettle Tone LLP (a special purpose vehicle of True North Fund VI LLP), and UK-based healthcare services expert, Bupa.
In September 2023, True North sold around 20% of its stake in the health insurer to Bupa for around Rs 2,700 crore, bumping up the latter's shareholding to approximately 63% and making it a majority shareholder. True North continues as a minority JV partner, with 28% stake.
The share transfer is significant as it comes after the Insurance Regulatory and Development Authority of India permitted foreign entities to own up to 74% in Indian insurers.
Bupa was a founding shareholder when the health insurance company was established in India in 2008. Later, True North became Niva Bupa's majority shareholder in 2019, by acquiring stake in it for Rs 511 crore.
In FY23, Niva Bupa became India's third-largest retail health insurer, clocking in more than Rs 4,000 crore in gross written premium.
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