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Niva Bupa Health Insurance Company Ltd IPO
Status: Closed
Overview
IPO date
07 Nov 2024 to 11 Nov 2024
Face value
₹ 10 per share
Price
₹ 70 to ₹74 per share
Issue Size
297297296 shares
(aggregating up to ₹ 2200 Cr)
(aggregating up to ₹ 2200 Cr)
Allotment Date
12 Nov 2024
Listing at
NSE
Issue type
Book Building
Sector
Insurance
Objectives of Niva Bupa Health Insurance Company Ltd IPO
Initial public offer of 297,297,296^ equity shares of face value of Rs. 10 each ("Equity Shares") of Niva Bupa Health Insurance Company Limited (formerly known as Max Bupa Health Insurance Company Limited) ("Company" or "Issuer") for cash at a price of Rs. 74 per equity share (including a share premium of Rs. 64 per equity share) aggregating to Rs. 2200.00 crores (the "Offer"), comprising a fresh issue of 108,108,108^ equity shares of face value Rs. 10 aggregating to Rs. 800.00 crores by the company ("Fresh Issue") and an offer for sale of 189,189,188^ equity shares of face value Rs. 10 aggregating to Rs. 1400.00 crores ("Offer for Sale") by the selling shareholders (as defined below), comprising an offer for sale of 47,297,297^ equity shares of face value Rs. 10 aggregating to Rs. 350.00 crores by Bupa Singapore Holdings Pte. Ltd and an offer for sale of 141,891,891^ equity shares of face value Rs. 10 aggregating to Rs. 1050.00 crores by Fettle Tone llp (together with Bupa Singapore Holdings Pte. Ltd, "Promoter Selling Shareholders"/ "Selling Shareholders" and such equity shares offered by the selling shareholders, the "Offered Shares"). The offer price is 7.40 times the face value of the equity shares.
The offer constituted 16.27% of the post-offer paid up equity share capital of the company.
^Subject to finalisation of basis of allotment.
Objectives of Niva Bupa Health Insurance Company Ltd IPO
Initial public offer of 297,297,296^ equity shares of face value of Rs. 10 each ("Equity Shares") of Niva Bupa Health Insurance Company Limited (formerly known as Max Bupa Health Insurance Company Limited) ("Company" or "Issuer") for cash at a price of Rs. 74 per equity share (including a share premium of Rs. 64 per equity share) aggregating to Rs. 2200.00 crores (the "Offer"), comprising a fresh issue of 108,108,108^ equity shares of face value Rs. 10 aggregating to Rs. 800.00 crores by the company ("Fresh Issue") and an offer for sale of 189,189,188^ equity shares of face value Rs. 10 aggregating to Rs. 1400.00 crores ("Offer for Sale") by the selling shareholders (as defined below), comprising an offer for sale of 47,297,297^ equity shares of face value Rs. 10 aggregating to Rs. 350.00 crores by Bupa Singapore Holdings Pte. Ltd and an offer for sale of 141,891,891^ equity shares of face value Rs. 10 aggregating to Rs. 1050.00 crores by Fettle Tone llp (together with Bupa Singapore Holdings Pte. Ltd, "Promoter Selling Shareholders"/ "Selling Shareholders" and such equity shares offered by the selling shareholders, the "Offered Shares"). The offer price is 7.40 times the face value of the equity shares.
The offer constituted 16.27% of the post-offer paid up equity share capital of the company.
^Subject to finalisation of basis of allotment.
Niva Bupa Health Insurance Company Ltd IPO Strategy
- Continuing to grow our product portfolio to serve the needs of customers, expand our partnerships with Network Hospitals, and further develop our healthcare ecosystem.
- Continue to invest in technology and analytics to facilitate the sales and servicing of our products.
- Further expand our presence in existing geographies within India, invest in deepening our distribution channels and increase market share in retail health insurance.
- Continue to invest in talent recruitment, development and retention to drive execution.
- Deepen culture of sustainability and "doing the right thing" to create a sustainable health franchise for future generations.
About Niva Bupa Health Insurance Company Ltd
Niva Bupa Health Insurance Company Limited was originally incorporated as Max Bupa Health Insurance Limited' at New Delhi, Delhi as a Public Limited Company dated September 5, 2008, issued by the Assistant Registrar of Companies and was granted its Certificate for Commencement of Business on December 23, 2008 by the Deputy Registrar of Companies, NCT of Delhi and Haryana. Thereafter, the Company name was changed to Max Bupa Health Insurance Company Limited', dated July 30, 2009 and again the Company name changed to Niva Bupa Health Insurance Company Limited' pursuant to a fresh Certificate of Incorporation dated July 5, 2021 issued by the Registrar of Companies, Delhi.
The Company is a standalone health insurer (SAHI) strategically focused on the retail health market. The Company underwrites primarily Health Insurance business which includes Personal accident, Critical illness and Travel. The Company is a joint venture between Bupa Singapore Holdings Pte Ltd, Singapore and Fettle Tone LLP. Bupa Singapore Holdings Pte Ltd is the holding Company with 63% shareholding.
The Company incorporated in September 2008 as a joint venture between Max India Limited and Bupa Singapore Holdings Pte. Ltd. The Company obtained regulatory approval to undertake Health Insurance business on 15th February 2010 from Insurance Regulatory and Development Authority of India (IRDAI and started selling Policies in March 2010.
Bupa Singapore Holdings Pte. Ltd. increased its shareholding in the Company from 26% to 49% in July 2016. Through acquisition of Equity Shares of the Company from Max India Limited and Bupa Singapore Pte. Ltd., Fettle Tone LLP became a shareholder in the Company in 2019.
The Company became a subsidiary of Bupa Singapore Holdings Pte. Ltd. by acquiring 366,381,439 Equity Shares of the Company from Fettle Tone LLP in 2024.
The Company is planning the to raise money from public through Initial Public Offering aggregating Rs 3000 Crores Equity Shares, comprising a Fresh Issue of Rs 800 Cr and an Offer for Sale of Rs 2200 Cr Equity Shares.
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T&C*
Strengths vs Risks of Niva Bupa Health Insurance Company Ltd
Know the pros & cons
Strengths
Granular retail health insurer with a focus on delivering robust GWP growth, capital efficiency and profitability.- Our diverse product suite for customers, bolstered by our track record for product innovation.
- Technology-led automated approach to customer servicing.
- Bupa parentage and brand associated with health insurance and healthcare.
- Our domain knowledge and experience in claims and provider management.
- Multi-channel diversified pan-India distribution, with technology-led empowerment of distribution partners.
- Our technology and analytics platforms.
- Experienced management team backed by established investors and underpinned by sustainable employment practices.
Risks
- Its profitability depends on its ability to manage the company underwriting risks and appropriately price its products and any failures to accurately estimate medical expenses or the frequency of claims could have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- As a significant portion of its business is generated from the health insurance line of business, any adverse changes to the demand for health insurance products and the retail health insurance sector may affect the sale of its health insurance products and in turn its business and profitability.
- If the company fails to align its products, including in particular, its retail health insurance products with the needs of the company targeted customer demographics or if its unsuccessful in its product development strategy, the company's business could be materially and adversely affected.
- The company is subject to extensive supervision and regulatory inspections (onsite and offsite, thematic or otherwise) by IRDAI and any regulatory and statutory actions against it or the company distributors could cause it reputational harm and have a material adverse effect on its business, financial condition, cash flows, results of operations and prospects.
- The success of its business depends on the company ability to attract and retain, as well as obtaining timely approvals from IRDAI with respect to, its senior management and employees in critical roles, and the loss of their services could have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- The company is dependent on its intermediated distribution channels, particularly individual agents, corporate agents and brokers, and if the company is unable to develop and grow its network of distributors or attract, retain and incentivize its distributors, it could have a material adverse effect on the company's business, financial condition, results of operations, cash flows and prospects.
- The company has incurred losses in Fiscal 2022 and the three months ended June 30, 2024 and June 30, 2023 and may not be able to maintain its profitability in the future, which could adversely affect its operations and financial condition and the trading price of the company Equity Shares.
- The company failures to accurately and timely pay claims could lead to customer dissatisfaction and result in regulatory actions or penalties, which could materially and adversely affect its business, financial condition, results of operations, cash flows and prospects.
- The company may be unable to obtain reinsurance on a timely basis at reasonable costs and could be exposed to credit risks in its reinsurance contracts, including with General Insurance Corporation of India ("GIC Re").
- Its Directors and Promoters may enter into ventures which are in businesses similar to its.
- If the company fails to develop and maintain satisfactory relationships with Network Hospitals, its may not be able to continue to offer cashless claims to the company customers and its ability to effectively manage the company claims costs may be adversely affected.
- Its GWP contribution from group health policies has increased over the last three Fiscals and the three months ended June 30, 2024. Any adverse changes to the demand for its group health policies could have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- The company is reliant on its information technology systems, and any cyberattacks or other security incidents could have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- There are outstanding legal proceedings involving the Company and Directors which may adversely affect its business, financial condition, results of operations, cash flows and prospects.
- If the company does not meet certain mandatory ratio requirements including with respect to its Solvency Ratio and investment asset allocations, could be subject to regulatory actions by IRDAI and could be forced to stop transacting any new business or change its business strategy.
- Credit and liquidity risks related to its investments and day-to-day operations may expose us to significant losses.
- The company operates in a highly competitive, evolving and rapidly changing industry and if th company cannot effectively respond to increasing competition, its results of operation and market share could be materially and adversely affected. Additionally, its financial performance may not be comparable with some of the company competitors due to differences in accounting policies which are permissible under applicable laws and regulations.
- Its historical growth rates may not be indicative of the company future growth rates or its growth potential and its may not be successful at implementing the company's growth strategies.
- The company is dependent on the strength of its brand and reputation, as well as the brand and reputation of Bupa and other entities of the Bupa Group, and any adverse impact on its reputation and our brand as well as those of Bupa could materially and adversely affect our business, financial condition, results of operations, cash flows and prospects.
- The company is required to maintain its expenses at certain levels in order to maintain the company profitability and to comply with IRDAI regulations.
- Its loss reserves are based on estimates of future claims liabilities, which if proved inadequate could lead to further reserve additions and adversely affect its results of operations.
- The company may not be able to timely detect or prevent misconduct, mis-selling, fraudulent activity or non-compliance with applicable laws by its employees and distributors which may lead to claims as well as regulatory action against it, and could adversely affect the company's business, prospects, financial condition and results of operations.
- The examination reports on its Restated Summary Statements disclose emphasis of matter paragraphs included in auditors reports on audited financial statements, and the company cannot assure that its financial information for future periods will not contain emphasis of matters.
- Its Restated Summary Statements and the presentation of the company performance metrics differ significantly from those of non-insurance companies and other accounting standards, including IFRS and Ind AS, and changes in the accounting standards may significantly affect its financial statements for the future years.
- The actuarial valuations of liabilities for the company policies with outstanding liabilities are certified by the appointed actuary and if such valuation is incorrect, it could have an adverse effect on its financial condition.
- The company has presented certain supplemental information of its performance and liquidity which is not prepared under or required under Indian GAAP.
- The company listed peers may outperform it in certain financial and operational ratios, and any failures to improve such ratios may adversely affect its competitive position.
- Any increase in or materialization of contingent liabilities could have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- The company may not be able to obtain sufficient financing to fund the expansion and development of its business.
- The company debt obligations contain restrictions that impact its business and expose it to risks that could adversely affect the company liquidity and financial condition.
- The company's non-convertible debentures are listed on NSE and the company is subject to rules and regulations with respect to such listed non-convertible debentures. If its fail to comply with such rules and regulations, the company may be subject to certain penal actions, which may have an adverse effect on its business, reputation, results of operations, cash flows and financial condition.
- A downgrade of or the announcement of a negative outlook with respect to its subordinated debt rating could have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- The company depends on the accuracy and completeness of information provided by or on behalf of its customers and counterparties, and any inability to verify and ensure the accuracy and completeness of such information may subject it to fraud, misrepresentation and other similar risks, which could adversely affect its business, financial condition, results of operations, cash flows and prospects.
- The company relies on third party technologies that are critical to its business and any inability to continue to use such technologies could have a material adverse impact on its business, financial condition, results of operations, cash flows and prospects.
- The company relies on third-party contractors and service providers for a number of services, but the company cannot guarantee that such contractors and service providers will comply with relevant regulatory requirements or their contractual obligations.
- The success and growth of its business depends upon the company's ability to adapt to technological changes, including artificial intelligence, and any inadequacies in its information technology systems could adversely affect its ability to maintain or increase the company's business volumes, profitability and market share.
- The company is subject to customer complaints, which, if left unaddressed or inefficiently handled, may have a material adverse impact on the Company.
- The company risk management, as well as the risk management tools available to it, may not be adequate or effective in identifying or mitigating risks to which the company is exposed.
- Pandemics, such as COVID-19, and other catastrophic events, such as natural disasters, could materially increase its liabilities for claims by policyholders, result in losses in its investment portfolios, and have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- The company's business is subject to a variety of laws and regulations and any failures to maintain its licenses or any changes in applicable laws and regulations could have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- Data collection and storage are increasingly subject to legislation and regulations in various jurisdictions and governments are increasingly acting to protect the privacy and security of personal information.
- Any failures to protect or enforce its rights to own or use trademarks, brand names, identities or any disputes relating to the company use of intellectual property of third parties could have an adverse effect on its business and competitive position.
- Limitations on its ability to cancel health insurance policies and inflexibility regarding pricing of health insurance policies could have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- The company's insurance coverage on its own assets may be inadequate to protect the company against all potential losses, which may have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- All of its business operations are conducted on leased premises and any inability to seek renewal or extension of such leases may materially affect its business operations.
- Certain of the company corporate records and filings are not traceable. Its cannot assure you that regulatory proceedings or actions will not be initiated against it in the future, and the company will not be subject to any penalty imposed by the competent regulatory authority in this regard.
- If the company is unable to establish and maintain an effective system of internal controls and compliances its business and reputation could be adversely affected.
- This Red Herring Prospectus contains information from an industry report which the company has commissioned and paid for from Redseer.
- Bupa Singapore, one of its Promoters will continue to retain significant shareholding in the Company after the Offer, which will allow them to exercise influence over it.
- Its Promoters, Directors, Key Managerial Personnel and Senior Management Personnel have interests in it other than the reimbursement of expenses incurred and normal remuneration and benefits.
Niva Bupa Health Insurance Company Ltd Peer Comparison
Understand the company’s industry standing
Niva Bupa Health Insurance Company Ltd
Star Health & Allied Insurance Company Ltd
ICICI Lombard General Insurance Company Ltd
Face Value
10
10
10
Standalone / Consolidated
Consolidated
Consolidated
Consolidated
Total Income Rs. Cr.
---
---
---
EPS-Basis
0.51
14.48
39.03
EPS-Diluted
0.5
14.19
38.78
NAV Per Share
12.06
108.35
242.75
P/E-Basic EPS
148
38.27
48.91
P/E-Diluted EPS
---
---
---
RONW(%)
5.68
14.35
17.17
Latest NAV Period
---
---
---
Latest NAV
---
---
---
How to check the allotment status of Niva Bupa Health Insurance Company Ltd IPO?
Follow the steps
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
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The IPO opens on 07 Nov 2024 & closes on 11 Nov 2024.
Niva Bupa Health Insurance Company Limited was originally incorporated as Max Bupa Health Insurance Limited' at New Delhi, Delhi as a Public Limited Company dated September 5, 2008, issued by the Assistant Registrar of Companies and was granted its Certificate for Commencement of Business on December 23, 2008 by the Deputy Registrar of Companies, NCT of Delhi and Haryana. Thereafter, the Company name was changed to Max Bupa Health Insurance Company Limited', dated July 30, 2009 and again the Company name changed to Niva Bupa Health Insurance Company Limited' pursuant to a fresh Certificate of Incorporation dated July 5, 2021 issued by the Registrar of Companies, Delhi.
The Company is a standalone health insurer (SAHI) strategically focused on the retail health market. The Company underwrites primarily Health Insurance business which includes Personal accident, Critical illness and Travel. The Company is a joint venture between Bupa Singapore Holdings Pte Ltd, Singapore and Fettle Tone LLP. Bupa Singapore Holdings Pte Ltd is the holding Company with 63% shareholding.
The Company incorporated in September 2008 as a joint venture between Max India Limited and Bupa Singapore Holdings Pte. Ltd. The Company obtained regulatory approval to undertake Health Insurance business on 15th February 2010 from Insurance Regulatory and Development Authority of India (IRDAI and started selling Policies in March 2010.
Bupa Singapore Holdings Pte. Ltd. increased its shareholding in the Company from 26% to 49% in July 2016. Through acquisition of Equity Shares of the Company from Max India Limited and Bupa Singapore Pte. Ltd., Fettle Tone LLP became a shareholder in the Company in 2019.
The Company became a subsidiary of Bupa Singapore Holdings Pte. Ltd. by acquiring 366,381,439 Equity Shares of the Company from Fettle Tone LLP in 2024.
The Company is planning the to raise money from public through Initial Public Offering aggregating Rs 3000 Crores Equity Shares, comprising a Fresh Issue of Rs 800 Cr and an Offer for Sale of Rs 2200 Cr Equity Shares.
Niva Bupa Health Insurance Company Ltd IPO will close on 11 Nov 2024.
- Granular retail health insurer with a focus on delivering robust GWP growth, capital efficiency and profitability.
- Our diverse product suite for customers, bolstered by our track record for product innovation.
- Technology-led automated approach to customer servicing.
- Bupa parentage and brand associated with health insurance and healthcare.
- Our domain knowledge and experience in claims and provider management.
- Multi-channel diversified pan-India distribution, with technology-led empowerment of distribution partners.
- Our technology and analytics platforms.
- Experienced management team backed by established investors and underpinned by sustainable employment practices.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Bupa Singapore Holdings Pte.Lt | 1069987767 | 62.19 | 1022690470 | 56.56 |
| 2 | Bupa Investment Overseas Ltd | --- | --- | --- | --- |
| 3 | Fettle Tone LLP | 461020811 | 26.8 | 319128919 | 17.65 |
- Its profitability depends on its ability to manage the company underwriting risks and appropriately price its products and any failures to accurately estimate medical expenses or the frequency of claims could have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- As a significant portion of its business is generated from the health insurance line of business, any adverse changes to the demand for health insurance products and the retail health insurance sector may affect the sale of its health insurance products and in turn its business and profitability.
- If the company fails to align its products, including in particular, its retail health insurance products with the needs of the company targeted customer demographics or if its unsuccessful in its product development strategy, the company's business could be materially and adversely affected.
- The company is subject to extensive supervision and regulatory inspections (onsite and offsite, thematic or otherwise) by IRDAI and any regulatory and statutory actions against it or the company distributors could cause it reputational harm and have a material adverse effect on its business, financial condition, cash flows, results of operations and prospects.
- The success of its business depends on the company ability to attract and retain, as well as obtaining timely approvals from IRDAI with respect to, its senior management and employees in critical roles, and the loss of their services could have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- The company is dependent on its intermediated distribution channels, particularly individual agents, corporate agents and brokers, and if the company is unable to develop and grow its network of distributors or attract, retain and incentivize its distributors, it could have a material adverse effect on the company's business, financial condition, results of operations, cash flows and prospects.
- The company has incurred losses in Fiscal 2022 and the three months ended June 30, 2024 and June 30, 2023 and may not be able to maintain its profitability in the future, which could adversely affect its operations and financial condition and the trading price of the company Equity Shares.
- The company failures to accurately and timely pay claims could lead to customer dissatisfaction and result in regulatory actions or penalties, which could materially and adversely affect its business, financial condition, results of operations, cash flows and prospects.
- The company may be unable to obtain reinsurance on a timely basis at reasonable costs and could be exposed to credit risks in its reinsurance contracts, including with General Insurance Corporation of India ("GIC Re").
- Its Directors and Promoters may enter into ventures which are in businesses similar to its.
- If the company fails to develop and maintain satisfactory relationships with Network Hospitals, its may not be able to continue to offer cashless claims to the company customers and its ability to effectively manage the company claims costs may be adversely affected.
- Its GWP contribution from group health policies has increased over the last three Fiscals and the three months ended June 30, 2024. Any adverse changes to the demand for its group health policies could have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- The company is reliant on its information technology systems, and any cyberattacks or other security incidents could have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- There are outstanding legal proceedings involving the Company and Directors which may adversely affect its business, financial condition, results of operations, cash flows and prospects.
- If the company does not meet certain mandatory ratio requirements including with respect to its Solvency Ratio and investment asset allocations, could be subject to regulatory actions by IRDAI and could be forced to stop transacting any new business or change its business strategy.
- Credit and liquidity risks related to its investments and day-to-day operations may expose us to significant losses.
- The company operates in a highly competitive, evolving and rapidly changing industry and if th company cannot effectively respond to increasing competition, its results of operation and market share could be materially and adversely affected. Additionally, its financial performance may not be comparable with some of the company competitors due to differences in accounting policies which are permissible under applicable laws and regulations.
- Its historical growth rates may not be indicative of the company future growth rates or its growth potential and its may not be successful at implementing the company's growth strategies.
- The company is dependent on the strength of its brand and reputation, as well as the brand and reputation of Bupa and other entities of the Bupa Group, and any adverse impact on its reputation and our brand as well as those of Bupa could materially and adversely affect our business, financial condition, results of operations, cash flows and prospects.
- The company is required to maintain its expenses at certain levels in order to maintain the company profitability and to comply with IRDAI regulations.
- Its loss reserves are based on estimates of future claims liabilities, which if proved inadequate could lead to further reserve additions and adversely affect its results of operations.
- The company may not be able to timely detect or prevent misconduct, mis-selling, fraudulent activity or non-compliance with applicable laws by its employees and distributors which may lead to claims as well as regulatory action against it, and could adversely affect the company's business, prospects, financial condition and results of operations.
- The examination reports on its Restated Summary Statements disclose emphasis of matter paragraphs included in auditors reports on audited financial statements, and the company cannot assure that its financial information for future periods will not contain emphasis of matters.
- Its Restated Summary Statements and the presentation of the company performance metrics differ significantly from those of non-insurance companies and other accounting standards, including IFRS and Ind AS, and changes in the accounting standards may significantly affect its financial statements for the future years.
- The actuarial valuations of liabilities for the company policies with outstanding liabilities are certified by the appointed actuary and if such valuation is incorrect, it could have an adverse effect on its financial condition.
- The company has presented certain supplemental information of its performance and liquidity which is not prepared under or required under Indian GAAP.
- The company listed peers may outperform it in certain financial and operational ratios, and any failures to improve such ratios may adversely affect its competitive position.
- Any increase in or materialization of contingent liabilities could have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- The company may not be able to obtain sufficient financing to fund the expansion and development of its business.
- The company debt obligations contain restrictions that impact its business and expose it to risks that could adversely affect the company liquidity and financial condition.
- The company's non-convertible debentures are listed on NSE and the company is subject to rules and regulations with respect to such listed non-convertible debentures. If its fail to comply with such rules and regulations, the company may be subject to certain penal actions, which may have an adverse effect on its business, reputation, results of operations, cash flows and financial condition.
- A downgrade of or the announcement of a negative outlook with respect to its subordinated debt rating could have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- The company depends on the accuracy and completeness of information provided by or on behalf of its customers and counterparties, and any inability to verify and ensure the accuracy and completeness of such information may subject it to fraud, misrepresentation and other similar risks, which could adversely affect its business, financial condition, results of operations, cash flows and prospects.
- The company relies on third party technologies that are critical to its business and any inability to continue to use such technologies could have a material adverse impact on its business, financial condition, results of operations, cash flows and prospects.
- The company relies on third-party contractors and service providers for a number of services, but the company cannot guarantee that such contractors and service providers will comply with relevant regulatory requirements or their contractual obligations.
- The success and growth of its business depends upon the company's ability to adapt to technological changes, including artificial intelligence, and any inadequacies in its information technology systems could adversely affect its ability to maintain or increase the company's business volumes, profitability and market share.
- The company is subject to customer complaints, which, if left unaddressed or inefficiently handled, may have a material adverse impact on the Company.
- The company risk management, as well as the risk management tools available to it, may not be adequate or effective in identifying or mitigating risks to which the company is exposed.
- Pandemics, such as COVID-19, and other catastrophic events, such as natural disasters, could materially increase its liabilities for claims by policyholders, result in losses in its investment portfolios, and have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- The company's business is subject to a variety of laws and regulations and any failures to maintain its licenses or any changes in applicable laws and regulations could have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- Data collection and storage are increasingly subject to legislation and regulations in various jurisdictions and governments are increasingly acting to protect the privacy and security of personal information.
- Any failures to protect or enforce its rights to own or use trademarks, brand names, identities or any disputes relating to the company use of intellectual property of third parties could have an adverse effect on its business and competitive position.
- Limitations on its ability to cancel health insurance policies and inflexibility regarding pricing of health insurance policies could have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- The company's insurance coverage on its own assets may be inadequate to protect the company against all potential losses, which may have a material adverse effect on its business, financial condition, results of operations, cash flows and prospects.
- All of its business operations are conducted on leased premises and any inability to seek renewal or extension of such leases may materially affect its business operations.
- Certain of the company corporate records and filings are not traceable. Its cannot assure you that regulatory proceedings or actions will not be initiated against it in the future, and the company will not be subject to any penalty imposed by the competent regulatory authority in this regard.
- If the company is unable to establish and maintain an effective system of internal controls and compliances its business and reputation could be adversely affected.
- This Red Herring Prospectus contains information from an industry report which the company has commissioned and paid for from Redseer.
- Bupa Singapore, one of its Promoters will continue to retain significant shareholding in the Company after the Offer, which will allow them to exercise influence over it.
- Its Promoters, Directors, Key Managerial Personnel and Senior Management Personnel have interests in it other than the reimbursement of expenses incurred and normal remuneration and benefits.
The Issue type of Niva Bupa Health Insurance Company Ltd is Book Building.
The minimum application for shares of Niva Bupa Health Insurance Company Ltd is 200.
The total shares issue of Niva Bupa Health Insurance Company Ltd is 297297296.
Initial public offer of 297,297,296^ equity shares of face value of Rs. 10 each ("Equity Shares") of Niva Bupa Health Insurance Company Limited (formerly known as Max Bupa Health Insurance Company Limited) ("Company" or "Issuer") for cash at a price of Rs. 74 per equity share (including a share premium of Rs. 64 per equity share) aggregating to Rs. 2200.00 crores (the "Offer"), comprising a fresh issue of 108,108,108^ equity shares of face value Rs. 10 aggregating to Rs. 800.00 crores by the company ("Fresh Issue") and an offer for sale of 189,189,188^ equity shares of face value Rs. 10 aggregating to Rs. 1400.00 crores ("Offer for Sale") by the selling shareholders (as defined below), comprising an offer for sale of 47,297,297^ equity shares of face value Rs. 10 aggregating to Rs. 350.00 crores by Bupa Singapore Holdings Pte. Ltd and an offer for sale of 141,891,891^ equity shares of face value Rs. 10 aggregating to Rs. 1050.00 crores by Fettle Tone llp (together with Bupa Singapore Holdings Pte. Ltd, "Promoter Selling Shareholders"/ "Selling Shareholders" and such equity shares offered by the selling shareholders, the "Offered Shares"). The offer price is 7.40 times the face value of the equity shares.
The offer constituted 16.27% of the post-offer paid up equity share capital of the company.
^Subject to finalisation of basis of allotment.