Niva Bupa Health Insurance IPO - Should You Apply? Read Anand Rathi's Analysis

Anand Rathi Report

Niva Bupa Health Insurance Company Ltd., formerly Max Bupa Health Insurance Company, will launch its initial public offering tomorrow and the offer closes for subscription on Nov. 11. India's prominent health insurance provider has fixed a price band of Rs 70-74 per share for its Rs 2,200 crore initial share sale. The minimum order lot for booking is 200.

The IPO is a combination of fresh issuance of equity shares worth Rs 800 crore and an offer for sale of up to Rs 1,400 crore by promoters.

Object of the issue

• Augmentation of the Company’s capital base to maintain and strengthen their solvency ratio.

Valuation & outlook

Niva Bupa Health Insurance Company is a prominent health insurance provider in India. As of Q1 FY25, the company insured 14.99 million active lives. With a strategic emphasis on the retail health market, their Gross Written Premium from retail health products accounted for 67.65% and 68.47% of their total GWP for Q1 FY25, and for Fiscal 2024, respectively.

They offer a diverse range of products for customers, strengthened by a strong track record in product innovation. Their health insurance offerings are designed to meet the needs of customers at every stage of life. The company aims to build a comprehensive, customer-focused health insurance platform and healthcare ecosystem, offering customers access to a variety of services, including wellness programs, doctor consultations, diagnostics, and medicine delivery.

They plan to keep investing in developing and expanding their health insurance ecosystem through their own initiatives, like introducing more health assessment tools and wellness content, and by partnering strategically for services such as digital consultations and home medicine delivery.

At the upper price band company is valued at P/BV of 6.1X with a market cap of Rs 1,35,200 million post issue of equity shares. We believe that the issue is fully priced and recommend “Subscribe – Long Term” rating to the IPO.

Click on the attachment to read the full IPO report:

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