0

0

0

0

0

0

0

0

0

market | IST

PolicyBazaar files DRHP for mega Rs 6,017-crore IPO

Policybazaar IPO comprises fresh issue of shares worth Rs 3,750 crore and an offer for sale (OFS) of shares worth Rs 2,267.5 crore, as per the draft red herring prospectus (DHRP).

PB Fintech Ltd, the parent of Indian online insurance platform PolicyBazaar, has filed preliminary papers with market regulator Securities and Exchange Board of India (SEBI) for a mega Rs 6,017.5-crore initial public offering (IPO).

The IPO comprises fresh issue of shares worth Rs 3,750 crore and an offer for sale (OFS) of shares worth Rs 2,267.5 crore, as per the draft red herring prospectus (DHRP). The company may consider a private placement of Rs 750 crore.

The proceeds will be utilised for expansion plans and as growth capital.

PB Fintech, backed by marquee investors such as Info Edge, Premji Invest, Softbank, Tiger Global and Temasek, is aiming for a valuation between $5.5 billion to $6 billion.

Besides these, PolicyBazaar is also backed by Ribbit Capital, True North, Inventus, True North, and Chiratae Ventures & Wellington Management, among others.

PolicyBazaar has picked Kotak Mahindra Capital, Morgan Stanley, ICICI Securities and Citi as advisors for the listing.

The company recorded a loss of Rs 218 crore on its revenue of Rs 515 crore in FY20, compared to a loss of Rs 213 crore on a revenue of Rs 310 crore in FY19. However, a spike in demand for online life and health insurance products post the COVID-19 outbreak is likely to have helped it.