Insurance player Policybazaar's parent company PB Fintech, will see investor Softbank offload Rs 1,875 crore worth of shares in the company's upcoming initial public offering (IPO), as per the draft red herring prospectus filed with the regulator. Softbank holds close to 10 percent stake in the company.
Founders Yashish Dahiya and Alok Bansal will also sell some of their shares, according to the filing. Dahiya will sell up to Rs 250 crore worth of shares while Bansal will sell shares up to Rs 95 crore.
InfoEdge, which participated in the Offer for Sale (OFS) of another portfolio company Zomato, will not be selling any shares in Policybazaar as part of the OFS. InfoEdge holds around 16 percent stake in the company.
Interestingly, founder United Trust, started by MakeMyTrip's Deep Kalra, former Google India MD Rajan Anandan and 1MG founder Prashant Tandon among others, to sell up to Rs 27.5 crore worth shares in the OFS, as per the offer document.
Of the total IPO size of Rs 6,017 crore, PB Fintech will raise Rs 3,750 crore through fresh issue of shares, while its Offer For Sale will be for Rs 2267 crore.
The company also said there could be a pre-IPO private placement of up to Rs 750 crore.
The company will utilise approximately Rs 15 million from the proceeds of the issue for "enhancing the visibility" of its brands. The funds will also be utilised for expanding growth initiatives to increase the consumer base, including offline presence, funding investments and new acquisitions, and for expansion outside India.