SUMMARY
- Niva Bupa Health Insurance and Paras Healthcare have received SEBI approval for their IPOs.
- Niva Bupa aims to raise Rs 3,000 crore, while Paras Healthcare seeks to raise Rs 400 crore.
- Both companies will use funds for debt repayment, boosting capital, and general corporate purposes.
Health insurer Niva Bupa Health Insurance Company Ltd and Paras Healthcare Ltd, operator of the ‘Paras Health’ hospital chain, have received approval from the Securities and Exchange Board of India (SEBI) to raise funds through Initial Public Offerings (IPOs). The companies, which filed draft IPO papers with SEBI in July-August, obtained the regulatory green light on October 18.
Niva Bupa Health Insurance aims to raise Rs 3,000 crore through its IPO, which consists of a fresh issuance of equity shares worth Rs 800 crore and an Offer for Sale (OFS) component of Rs 2,200 crore. Promoter Bupa Singapore Holdings Pte Ltd and investor Fettle Tone LLP will offload shares in the OFS. The company plans to use Rs 625 crore from the fresh issuance to strengthen its capital base and solvency levels, while the rest will be allocated for general corporate purposes.
Paras Healthcare, which operates eight hospitals across five states and one union territory under the Paras Health brand, aims to raise Rs 400 crore through a fresh issue of equity shares and an OFS. Promoter Dharminder Kumar Nagar and investor Commelina Ltd will sell shares through the OFS. The company will use the proceeds from the fresh issue to repay debt and invest in subsidiaries.
Both companies plan to list their equity shares on the BSE and NSE.
