Niva Bupa Health Insurance Company Ltd and Paras Healthcare Ltd have received regulatory approval from the Securities and Exchange Board of India (SEBI) to proceed with their Initial Public Offerings (IPOs). The companies had filed their draft papers with SEBI between July and August and secured the green light on October 18, 2024.
Niva Bupa Health Insurance, a prominent player in the health insurance sector, plans to raise Rs 3,000 crore through its IPO. The offering comprises a fresh issuance of equity shares worth Rs 800 crore and an Offer for Sale (OFS) of Rs 2,200 crore. Major shareholders, including Bupa Singapore Holdings Pte Ltd and Fettle Tone LLP, will divest their stakes through the OFS component.
The company intends to use Rs 625 crore from the fresh issue to strengthen its capital base and improve its solvency ratio. The remaining amount will be allocated towards general corporate purposes, which may include expanding its operations or improving infrastructure.
Paras Healthcare, the operator of the ‘Paras Health’ hospital chain, has also lined up its IPO plans, seeking to raise Rs 400 crore. Similar to Niva Bupa, the IPO structure involves both a fresh issue of equity shares and an OFS. Dharminder Kumar Nagar, the company’s promoter, along with Commelina Ltd, will offload shares through the OFS.
The proceeds from Paras Healthcare’s fresh issue will be used primarily for debt repayment and investments in its subsidiaries, enabling the hospital chain to bolster its financial position as it continues to grow across multiple states.
Both companies have announced plans to list their equity shares on major stock exchanges, including the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Credit: This article is based on information from Economic Times, MoneyControl, and Business Standard.
Key Highlights:
- Niva Bupa Health Insurance and Paras Healthcare received SEBI approval for their IPOs on October 18, 2024.
- Niva Bupa aims to raise Rs 3,000 crore, while Paras Healthcare is targeting Rs 400 crore.
- Both companies’ IPOs include a combination of fresh equity issuance and Offer for Sale (OFS).
- The proceeds will be used for capital strengthening, debt repayment, and corporate purposes.