The Securities and Exchange Board of India (SEBI) has granted approval to True North. One of the leading home-grown private equity firms. True North’s health insurance venture, now branded as Niva Bupa, was formerly known as Max Bupa Insurance Company. The approval is for its plan to raise ₹3,000 crore through IPO. The company filed its IPO papers with SEBI on June 29, 2024.
What You Need To Know Before Listing
True North’s Insurance Venture Niva Bupa’s IPO: Key Details Announced
Niva Bupa has announced its IPO with a face value of ₹10 per share, aiming to raise a total of ₹3,000 crore. The IPO comprises a fresh issuance of equity shares worth ₹800 crore, alongside an OFS of up to ₹2,200 crore by both a promoter and an investor shareholder.
In the OFS segment, an investor Fettle Tone LLP, plans to sell shares valued at ₹1,880 crore. Whereas promoter Bupa Singapore Holdings will offload shares worth ₹320 crore. This strategic move is expected to boast True North’s position in the health insurance market through its Niva Bupa brand.
Niva Bupa Plans IPO With Strong Backing From Stakeholders
As Niva Bupa is gearing up for an IPO you shall know a little background before stepping in. Niva Bupa is primarily owned by Bupa, a UK-based healthcare provider. Bupa Singapore Holdings Ltd controls 62.27% of the company, while Fettle Tone LLP holds 27.86%.
The IPO aims to raise ₹625 crore from fresh equity issuance to boost its capital base and improve solvency levels, while also supporting general corporate purposes. This move positions Niva Bupa as the second standalone health insurer to seek a public listing, following Star Health & Allied Insurance Company.
Lead Managers, Listing Plans
Niva Bupa has appointed ICICI Securities, Morgan Stanley India Company, Kotak Mahindra Capital Company, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors as the book-running lead managers for its upcoming IPO. The company plans to list its equity shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
