True North is set to sell around 20 per cent of its stake in the Indian health insurance joint venture to its overseas partner Bupa, increasing latter’s shareholding to approximately 63 per cent
Mumbai:
Indian private equity firm True North has agreed to sell 20 per cent of its stake in Niva Bupa, an Indian health insurance company, to its overseas joint venture partner, Bupa, for around Rs 2700 crore [around £267m GBP equivalent], subject to IRDAI approval.
Post this transaction, Bupa becomes Niva Bupa’s majority shareholder and valuation of the company is now Rs 13,500 crore.
True North is set to sell around 20 per cent of its stake in the business to Bupa, increasing Bupa’s shareholding to approximately 63 per cent.
On approval, the share transfer will be one of the largest transactions in the Indian insurance industry by a global player since the IRDAI permitted foreign entities to own up to 74 per cent of an Indian insurer.
Iñaki Ereño, Group CEO of Bupa said: “ In becoming a majority shareholder, we are building on the foundation of our strong partnership with True North. We look forward to using our market expertise and global scale to help Niva Bupa continue to grow and serve even more customers with their healthcare needs.”
Krishnan Ramachandran, managing director and CEO of Niva Bupa said: “It gives renewed energy to both the employees and stakeholders of Niva Bupa to pursue growth and deliver on our purpose, which is to give every citizen of India the confidence to access the best healthcare. This also enhances our ability to bring global best practices to our business in order to provide an outstanding customer experience.”
Divya Sehgal, partner, True North, stated, “We are elated to see Niva Bupa’s transformation in the last few years. The company’s premium crossed Rs 4000 crore last year, a significant increase from Rs 1000 crore at the time of our initial transaction in 2019. Niva Bupa’s market share has also more than doubled in this tenure, a further testament to the firm’s exceptional management and its bright future.
Bupa, an international healthcare company headquartered in the UK, was a founding shareholder when the business was first established in India in 2008.
True North, one of India’s most experienced private equity firms, became Niva Bupa’s majority shareholder in 2019. Since 2019 True North has worked closely with Bupa on implementing a successful strategy for Niva Bupa.
The joint venture partners have worked closely to put Niva Bupa on a strong growth trajectory, adding innovative new products, setting up a multi-channel distribution network and making the business increasingly customer-centric.