The upcoming Initial Public Offering (IPO) of Niva Bupa Health Insurance Limited, formerly known as Max Bupa, is set to be a significant financial event for the company.

According to the draft red herring prospectus (DRHP) filed with the  Securities and Exchange Board of India (SEBI), the IPO will consist of a fresh issue of shares worth Rs 800 crore and an offer for sale amounting to Rs 2,200 crore by the Promoter and Investor Selling Shareholders. Thus, the total IPO would be worth Rs 3,000 crores.

The offer for sale will include up to Rs 320 crore by Bupa Singapore Holdings Pte. Ltd. and up to Rs 1,880 crore by Fettle Tone LLP. It’s important to note that there’s a possibility of a pre-IPO placement of up to Rs 160 crore, which would reduce the size of the fresh issue.

In terms of the IPO process, will be conducted through the Book Building Process, with the allocation for Qualified Institutional Buyers (QIBs) set at a minimum of 75% of the offer. Non-Institutional Bidders (NIBs) can subscribe to up to 15% of the offer, and Retail Individual Bidders (RIBs) can subscribe to up to 10% of the offer.

The net proceeds from the fresh issue will primarily be used for strengthening the company’s capital base, with Rs 625 crore allocated for this purpose, and the remainder for general corporate purposes.

The company has appointed ICICI Securities Limited, Morgan Stanley India Company Limited, Kotak Mahindra Capital Company Limited, Axis Capital Limited, HDFC Bank Limited, and Motilal Oswal Investment Advisors Limited as the book-running lead managers, with KFin Technologies Limited serving as the registrar. 

Further, the shares of Niva Bupa are scheduled to be listed on both the BSE and NSE.