Indian health insurer Niva Bupa is planning a $360 million IPO, potentially valuing the company at up to $2.5 billion, as per sources and a document reviewed by Reuters. British United Provident Association (Bupa), holding a 63% stake, plans to sell shares worth up to $38 million, while Indian private equity firm True North aims to sell shares worth up to $225 million, according to the IPO document. Niva Bupa is set to file for regulatory approval next week. Both Niva Bupa, Bupa U.K., and True North declined to comment.
This move highlights India’s thriving IPO market, with investors increasingly funding various companies. Earlier this month, Hyundai filed for a potentially record-breaking IPO in India. Of the $360 million IPO, Niva Bupa will raise $96 million through new shares, while $264 million will come from existing investors’ shares. The funds will bolster the company’s balance sheet and cover operational costs.
Niva Bupa has enlisted Morgan Stanley, and Indian banks ICICI, Kotak, Axis, HDFC, and Motilal Oswal for the IPO. None of these banks responded to requests for comments. Despite India’s low insurance penetration rates, the market is expanding rapidly, driven by increased risk awareness post-COVID-19. Rising healthcare costs have boosted insurance sales, with most Indians relying on private healthcare.
Niva Bupa, partnered with over 10,000 hospitals in India, holds a 1.8% market share, trailing behind giants like Allianz and Generali. The Indian government in 2021 allowed foreign investors to increase stakes in local insurers from 49% to 74%, leading Bupa to raise its stake to 63% in 2023.
Other notable IPOs include electric-scooter maker Ola Electric, SoftBank-backed retailer FirstCry, and mortgage financier Bajaj Housing Finance, aiming to raise between $500 million to $1 billion each.
