True North sells 20% stake in Niva Bupa, aims for ₹1,100 cr raise

livemint.com:

₹2700 crore in Niva Bupa, a general insurance company, to its joint venture partner Bupa, an international healthcare company headquartered in the UK. The equity fund company is also looking at raising around ₹1,100 crore in primary capital which will value it at a post-money valuation of ₹12,600 crore. The company is looking at listing on Indian bourses in the next 12-15 months, a senior fund official said.

With this transaction, Bupa, a founding shareholder when the business was first established in India in 2008, will end up holding around 63% stake in the insurer. True North, through its special purpose vehicle True North’s SPV Fettle Tone, will hold around 28% stake post the transaction. “The transaction involves primary fund infusion of around ₹300 crore by both the JV partners and another ₹800 crore will be raised from external investors," said Divya Sehgal, partner, True North.

“Post the primary infusion and subsequent dilution, the SPV will hold around 28% stake in the company," Sehgal added. Mint first reported the company’s plans to raise $100 million in primary capital on March 27. True North acquired a 55.6% stake in the business in 2019 through its special purpose vehicle (SPV) Fettle Tone from Max India Ltd stake for ₹510 crore in 2019.

In March 2021, Axis Bank acquired a 9.9% stake in True North’s SPV Fettle Tone for ₹90.8 crore, according to filings at the time. True North now holds little more than 60% of the SPV, with other investors holding the remaining. The partial stake sale to Bupa gives True North more than five-fold returns on its investment.