Policy bazaar parent files papers for IPO

The parent of online financial service providers Policybazaar and Paisabazaar on Monday filed draft share sale documents with the Securities Exchange Board of India for a 6,017.5 crore initial public offering.

The IPO consists of a fresh issue of shares worth 3,750 crore and an offer for sale (OFS) of 2,267.50 crore by its existing shareholders and promoters, parent PB Fintech Ltd said.

The OFS includes a share sale of up to 1,875 crore by Softbank along with a sale of shares worth 250 crore and 95 crore by Policybazaar co-founders Yashish Dahiya and Alok Bansal.

Founders United Trust, an investment venture previously backed by industry stalwarts such as Sequoia India’s Rajan Anandan, MakeMyTrip’s Deep Kalra and ChrysCapital’s Ashish Dhawan, will also be selling a stake worth 27.5 crore.

In its share sale documents, PB Fintech said it is in consultation with its investment bankers to consider a private placement of equity shares of around 750 crore.

Kotak Mahindra Capital, Morgan Stanley, Citigroup Global Markets India, ICICI Securities, HDFC Bank, IIFL Securities and Jefferies India are managing the share sale.

Policybazaar will be allocating 1,500 crore from the issue to enhance visibility and awareness of its brands. An additional 375 crore and 600 crore from the issue proceeds will be used for expansion, including setting up an offline presence and for funding strategic acquisitions.

Policybazaar will also be using 375 crore from the issue for expanding its presence outside India.

The company stated that it received its direct insurance broking license from the Insurance Regulatory and Development Authority (IRDAI) in June. Previously, Policybazaar operated as a web aggregator for insurance products.

“The broking license will allow us to go beyond our online presence and offer services such as offline claim assistance and to establish a point of sale presence network across the country,” the company said.

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