SEBI Approves IPOs Of Niva Bupa Health, Paras Healthcare

The Securities and Exchange Board of India approved the initial public offerings of Niva Bupa Health Ltd. and Paras Healthcare Ltd.

Niva Bupa Health filed for IPO on July 2, 2024, while Paras Healthcare filed for IPO on Aug. 2, 2024. However, the approval was obtained on Oct. 18, 2024, according to an update released on Monday.

Both Niva Bupa Health and Paras Healthcare IPOs comprise of a fresh issue and offer for sale components.

Shares of these companies will be listed on the BSE and NSE.

Niva Bupa Health Insurance Co.'s IPO will consist of a fresh issue of shares worth Rs 800 crore, and an offer for sale of shares of up to Rs 2,200 crore, according to the draft red herring prospectus filed with the Securities and Exchange Board of India.

Niva Bupa Health Insurance plans to raise Rs 3,000 crore through the IPO.

Promoter Bupa Singapore Holdings Pte. will offload shares worth Rs 320 crore, while Fettle Tone LLP will sell stake to the tune of Rs 1,880 crore, via OFS.

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.

The health insurance company will use the proceeds from the issue to augment the company's capital base to strengthen solvency levels and for general corporate purposes.

ICICI Securities Ltd., Morgan Stanley India Co., Kotak Mahindra Capital Co., Axis Capital Ltd., HDFC Bank Ltd., and Motilal Oswal Investment Advisors Ltd. are the book-running lead managers for the IPO.

The IPO of Paras Healthcare—which runs hospital chain under the Paras Health brand—also consists of both a fresh issue of equity shares of up to Rs 400 crore and an offer-for-sale of up to 1.5 crore shares, according to the draft red herring prospectus.

Promoter Dharminder Kumar Nagar will offload 29.28 lakh equity shares and investor Commelina Ltd. will divest 1.2 crore shares, via OFS.

Paras Healthcare proposes to utilise the proceeds from the fresh issue for payment of debt, investment in subsidiaries—Paras Healthcare (Ranchi) Pvt. and Plus Medicare Hospitals Pvt.—in the form of debt or equity for payment of borrowings and for general corporate purposes.

Paras Healthcare offers several clinical specialties across hospitals, including cardiac sciences, oncology, neuro sciences, gastro sciences and orthopedics and joint replacement.

ICICI Securities, IIFL Securities and Motilal Oswal Investment Advisors are the book-running lead managers to the public issue.