Niva Bupa Health Insurance, Paras Healthcare to float IPOs

New Delhi, PTI: Health insurer Niva Bupa Health Insurance Company Ltd and Paras Healthcare Ltd, which runs the hospital chain under the 'Paras Health' brand, have received Sebi's go ahead to raise funds through Initial Public Offerings (IPOs), an update with the markets regulator showed on Monday. Niva Bupa Health Insurance Company is looking to garner Rs 3,000 crore through an initial share sale involving fresh issuance of equity shares and Offer for Sale (OFS) component.

Paras Healthcare is aiming to raise Rs 400 crore through fresh issuance of equity shares, besides there is an OFS component. The two companies, which filed their draft IPO papers with the Securities and Exchange Board of India (Sebi) during July- August, obtained its observations on October 18, the update showed. In Sebi's parlance, obtaining observation means its go ahead to float the public issues. The equity shares of both companies proposed to be listed on the BSE and NSE. Going by the draft papers, the proposed IPO of Niva Bupa Health Insurance Company Ltd, formerly Max Bupa Health Insurance Company, is a combination of fresh issuance of equity shares worth Rs 800 crore and OFS of shares valued Rs 2,200 crore by a promoter and an investor shareholder.

Under the OFS, investor Fettle Tone LLP will sell shares to the tune of Rs 880 crore and promoter Bupa Singapore Holdings Pte Ltd will offload shares valued Rs 320 crore. Niva Bupa is majorly controlled by Bupa, an international healthcare company headquartered in the UK. At present, Bupa Singapore Holdings Pte owns 62.27 per cent stake while Fettle Tone LLP holds 27.86 per cent stake in the insurance firm.