The healthcare sector in India is set to witness a major boost as Niva Bupa Health Insurance and Paras Healthcare gear up for their initial public offerings (IPOs). The Securities and Exchange Board of India (SEBI) has granted both companies approval to proceed with their fundraising plans, signaling exciting developments in healthcare financing.

Niva Bupa aims to raise ₹3,000 crore through a mix of a fresh issue worth ₹800 crore and an offer-for-sale (OFS) of ₹2,200 crore. In the OFS, Bupa Singapore Holdings will divest shares worth ₹320 crore, and Fettle Tone will offload ₹1,880 crore worth of shares. The proceeds from the fresh issue will be used to strengthen the insurer’s capital base and improve its solvency position.

Paras Healthcare’s IPO will include a ₹400 crore fresh issue along with an OFS of 1.49 crore shares. Key stakeholders participating in the OFS include promoter Dharminder Kumar Nagar, selling 29.28 lakh shares, and investor Commelina, offloading 1.2 crore shares. The funds raised will be primarily utilized for debt repayment and general corporate purposes. Paras Healthcare, operating under the Paras Health brand, currently manages eight hospitals with 2,135 beds across six states.

Also Read: Kashi To Emerge as a Healthcare Hub: PM Modi

Both companies have received SEBI’s observation letters, clearing the path for their IPOs. Backed by True North, Niva Bupa filed its draft red herring prospectus in June 2024, while Creador-supported Paras Healthcare submitted its filing in July. These IPOs aim to not only attract investments but also solidify the companies’ positions in the rapidly growing healthcare sector.

The public offerings are expected to create new opportunities, with Niva Bupa focusing on boosting solvency and Paras Healthcare reducing its debt burden to support expansion. Investors and industry watchers will be closely following these IPOs as they promise to shape the financial future of healthcare in India.

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