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IPO Alert: SEBI Approves Niva Bupa and Paras Healthcare – Read Full Details Here!

SEBI approved IPOs for Niva Bupa Health Insurance and Paras Healthcare, enabling them to move forward with fundraising. Both firms are backed by private equity groups True North and Creador.

The Securities and Exchange Board of India (SEBI) has granted approval to Niva Bupa Health Insurance and Paras Healthcare to launch their initial public offerings (IPOs). SEBI’s observation letters, issued on October 18, 2024, allow both companies to proceed with their respective fundraising plans, which were submitted earlier in the year. 

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Niva Bupa Health Insurance and Paras Healthcare are now set to enter the capital markets, backed by major private equity firms True North and Creador, respectively.

Niva Bupa Health Insurance: Raising Rs 3,000 Crore

Niva Bupa Health Insurance, supported by global private equity firm True North, aims to raise Rs 3,000 crore through its IPO. This will consist of a fresh issue of equity shares worth Rs 800 crore and an offer-for-sale (OFS) of Rs 2,200 crore. 

The OFS will involve promoter Bupa Singapore Holdings Pte selling shares worth Rs 320 crore and investor Fettle Tone LLP offloading Rs 1,880 crore worth of shares. Niva Bupa plans to use the funds raised from the fresh issue to strengthen its capital base and enhance its solvency levels, while the remaining funds will be directed towards general corporate purposes.

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Niva Bupa Health Insurance, a joint venture between Bupa Group and Fettle Tone LLP, could become the fourth health insurance company listed on Indian stock exchanges, following Star Health, ICICI Lombard, and New India Assurance. The IPO is being managed by ICICI Securities, Morgan Stanley India, Kotak Mahindra Capital, Axis Capital, HDFC Bank, and Motilal Oswal Investment Advisors.

Paras Healthcare: Rs 400 Crore Fresh Issue

Paras Healthcare, backed by private equity firm Creador, is set to raise Rs 400 crore through a fresh issue in its IPO, with an additional offer-for-sale of 1.49 crore equity shares. Promoter Dharminder Kumar Nagar will sell 29.28 lakh shares, while investor Commelina, which acquired a stake in July 2017, will offload 1.2 crore shares through the OFS.

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The proceeds from the fresh issue will be primarily used to repay Rs 300 crore of the company’s existing debt, while the remaining funds will be allocated for general corporate purposes. Paras Healthcare operates eight hospitals under the Paras Health brand, with 2,135 beds across five states and one union territory. The public issue will be managed by ICICI Securities, IIFL Securities, and Motilal Oswal Investment Advisors.

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