Policybazaar files for Rs 6,017 crore IPO
Policybazaar has joined a number of other new-age fintech peers like Paytm, Mobikwik & Fino Payments Bank who have announced their IPO
India’s largest online insurance aggregator Policybazaar has joined a number of other new-age fintech peers like Paytm, Mobikwik and Fino Payments Bank who have announced their public issue. PB Fintech, which operates insurance marketplace platform Policybazaar and credit comparison portal Paisabazaar, filed its initial public offering (IPO) papers with the market regulator Sebi (Securities exchange board of India) for raising Rs 6,017 crore from the market.
The issue comprises of fresh issue of Rs 3,750 crore and an offer for sale worth Rs 2,267.5 crore. SVF Python II (Softbank) is the major PE investor looking for an exit. Besides Yashish Dahiya, CEO of the company will also offload part of his stake, along with other shareholders.
Policybazaar is backed by marquee investors such as Softbank, Temasek, Info Edge, among others.
The firm said it is in consultation with its book running lead managers for raising around Rs 750 crore by way of a private placement of equity shares ahead of the IPO.
The company is yet to report a profit and has incurred restated losses of Rs 150 crore, Rs 304 crore and Rs 3,47 crore in fiscal 2021, 2020 and 2019, respectively. Moreover, there is no expectation that it will come into the black in the near future.
In the draft red herring prospectus, the company has mentioned, “We expect our costs to increase over time and our losses will continue given the investments expected towards growing our business. We have expended and expect to continue to expend substantial financial and other resources on, among others, developing a physical channel and investing behind experiments.”
Kotak Mahindra Capital, Morgan Stanley, Citigroup Global Markets India, ICICI Securities, HDFC Bank Ltd, IIFL Securities and Jefferies India are the book running lead managers to the issue.
A news report had earlier said that proceeds from the issue will be used for expansion plans and as growth capital, adding that Policybazaar was seeking a valuation of $5.5-6 billion.