Mumbai: Niva Bupa Health Insurance Ltd (erstwhile Max Bupa) has filed its draft red herring prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (SEBI) to raise funds through an Initial Public Offering (IPO) of Rs 3,000 crores.
The IPO with a face value of Rs 10 each is a mix of fresh issuance of Rs 800 crores and an offer for sale of upto Rs 2,200 crore by Promoter and Investor Selling Shareholders.
The offer for sale consists of Rs 320 crore by Bupa Singapore Holdings Pte Ltd and upto Rs 1880 crore by Fettle Tone LLP.
The company, in consultation with the book-running lead manager, may consider an issue of specified securities up to Rs 160 crore as a “pre-IPO replacement.” If such placement is completed, the fresh issue size will be reduced.
The Offer is being made through the Book Building Process, wherein not less than 75% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers.
The company intends to utilize the Net proceeds from the Fresh Issuance to the extent of Rs 625 crores towards augmentation of the company’s capital base to strengthen solvency levels and for general corporate purposes.
