Niva Bupa Health Insurance Company Ltd and Paras Healthcare Ltd have received approval from the Securities and Exchange Board of India (Sebi) to proceed with their Initial Public Offerings (IPOs). This was confirmed in an update from the markets regulator on Monday.
Niva Bupa aims to raise ₹3,000 crore through its IPO, which will include both fresh equity shares and an Offer for Sale (OFS) component. Paras Healthcare is looking to secure ₹400 crore, also through a mix of fresh equity and OFS.
Both companies submitted their draft IPO applications to Sebi between July and August, and they received the necessary approval on October 18.
The proposed IPO for Niva Bupa will consist of ₹800 crore in new equity and ₹2,200 crore in shares offered by existing shareholders. Specifically, Fettle Tone LLP plans to sell shares worth ₹880 crore, while promoter Bupa Singapore Holdings Pte Ltd will offload shares valued at ₹320 crore. Bupa, a UK-based international healthcare firm, controls a majority stake in Niva Bupa, with Bupa Singapore owning 62.27% and Fettle Tone holding 27.86%.
Niva Bupa intends to use ₹625 crore of the proceeds from the fresh issue to enhance its capital base and strengthen its solvency levels, with the remainder allocated for general corporate purposes. This IPO will mark the second standalone health insurer to go public, following Star Health & Allied Insurance Company.
Paras Healthcare’s IPO will comprise up to ₹400 crore in new equity and an OFS of up to 1.5 crore shares. Promoter Dharminder Kumar Nagar plans to sell around 29.28 lakh shares, while investor Commelina Ltd will divest 1.2 crore shares.
The proceeds from Paras Healthcare’s fresh issue will be directed towards debt repayment, investment in its subsidiaries, and general corporate purposes. The company operates eight hospitals under the ‘Paras Health’ brand across five states and one union territory, with a total capacity of 2,135 beds as of March 2024.
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