PB Fintech, the parent company of online marketplaces Policybazaar and Paisabazaar, has filed a sales document with the Securities Exchange Board of India (Sebi) to raise Rs 6,017 crore ($809 million) via Initial Public Offering (IPO).
According to parent company PB Fintech Ltd, the IPO comprises a fresh issue of shares totalling 3,750 crores and an offer for sale (OFS) of 2,267.50 crores by current shareholders and promoters.
After Zomato, Paytm, Mobikwik, and CarTrade, the Gurgaon-based company is now the fifth to begin the process of listing on Indian stock exchanges this year.
SoftBank Vision Fund Python, which owns 9.75 per cent of the company, is anticipated to sell roughly Rs 1,875 crore ($250 million) in stock through the OFS.
Besides Softbank shares worth ₹250 crores and ₹95 crores by Policybazaar co-founders Yashish Dahiya and Alok Bansal are also en route to sell their shares.
Founders United Trust, a venture-backed by Rajan Anandan of Sequoia India, Deep Kalra of MakeMyTrip, and Ashish Dhawan of ChrysCapital, would also be selling a stake worth 27.5 crores.
PB Fintech stated in its share sale paperwork that it is in discussions with its investment bankers about a private placement of equity shares worth about 750 crores.
The firm intends to use the funds from the new issue “for improving exposure and awareness of brands,” as well as new chances to increase its consumer base, according to its draft filing. In addition, Policybazaar and its affiliates would likely consider further strategic investments and acquisitions to grow their reach outside of India, according to the firm’s draft prospectus.
The share sale is being managed by Kotak Mahindra Capital, Morgan Stanley, Citigroup Global Markets India, ICICI Securities, HDFC Bank, IIFL Securities, and Jefferies India.
The Insurance Regulatory and Development Authority (IRDAI) granted the company a direct insurance broking licence in June, according to the company. Policybazaar was previously a digital aggregator for insurance policies.
According to the company, the brokerage licence would allow them to expand beyond their internet presence and provide services such as offline claim support and the establishment of a point-of-sale network across the country.