PB Fintech, which operates online insurance platform Policybazaar and credit comparison portal Paisabazaar, has filed preliminary papers with market regulator Sebi to raise Rs 6,017.50 crore through an initial public offer (IPO).
The IPO comprises a fresh issue of Rs 3,750 crore worth of equity shares and an offer for sale (OFS) of Rs 2,267.50 crore by existing shareholders, according to the draft red herring prospectus (DRHP).
As part of the OFS, SVF Python II (Cayman) will sell shares worth Rs 1,875 crore, Yashish Dahiya will shares worth Rs 250 crore, and some other selling shareholders will also offer shares.
The firm may consider raising around Rs 750 crore by way of a private placement of equity shares ahead of the IPO.
Proceeds from the fresh issue will be used towards enhancing visibility and awareness of the company’s brands to look for new opportunities to expand growth initiatives to increase the consumer base, including offline presence.
Also, the proceeds from the IPO will be used for funding strategic investments and acquisitions, expanding presence outside India, and general corporate purpose.
Kotak Mahindra Capital Company, Morgan Stanley India Company, Citigroup Global Markets India, ICICI Securities, HDFC Bank, IIFL Securities, and Jefferies India are the book running lead managers to the issue.
PB Fintech is the leading online platform for insurance and lending products, leveraging the power of technology, data, and innovation.
It provides convenient access to insurance, credit, and other financial products and aims to create awareness among Indian households about the financial impact of death, disease, and damage.
Founded in 2008 by Yashish Dahiya, Policybazaar’s investors include Softbank, Tencent, Azim Premji-owned PremjiInvest, Falcon Edge Capital, and Tiger Global, among several others. It has raised a total of $766.6 million in over 13 rounds.
The Indian startup ecosystem is set to witness a flurry of IPOs, with the successful debut of Zomato boosting the confidence of the companies. Other startups in the pipeline include Paytm, Mobikwik, and Nykaa.