Policybazaar IPO gets SEBI nod to raise over ₹6,017 cr

PB Fintech Ltd, which operates online insurance platform Policybazaar and credit comparison portal Paisabazaar, has received approval from capital markets regulator Sebi to raise Rs 6,017.50 crore through an initial public offering (IPO), PTI news agency reported on Tuesday.

The company had filed its draft prospectus to Sebi on August 2. According to the draft documents, the company may consider raising around ₹750 crore via private placement of equity shares.

The IPO comprises a fresh issue of Rs 3,750 crore worth of equity shares and an offer to sell Rs 2,267.50 crore by existing shareholders.

As part of OFS, SVF Python II (Cayman) will sell shares worth Rs 1,875 crore, Yashish Dahiya will sell shares worth Rs 250 crore and some other selling shareholders will also offer shares.

Proceeds from the fresh issue will be used to enhance visibility and awareness of the company's brands, to seek new opportunities to expand growth initiatives to increase the consumer base, including an offline presence.

In addition, the proceeds from the IPO will be used to fund acquisitions and strategic investments, expanding presence outside India, and the company's general purposes.

Kotak Mahindra Capital, Morgan Stanley of India, Citigroup Global Markets India, ICICI Securities, HDFC Bank Ltd, IIFL Securities and Jefferies India are the book running lead managers to the issue.

Policy Bazaar claims to be India's largest online platform for insurance and loan products, harnessing the power of technology, data and innovation. It provides convenient access to insurance, credit and other financial products and aims to raise awareness among Indian families about the financial impact of death, illness and injury.

The company said it will develop up to 200 physical retail outlets and expects to spend up to ₹150 crore for setting up its offline presence by the end of FY24.

Policybazaar is backed by marquee investors such as Softbank, Temasek, Info Edge and others. It is seeking a valuation of $5.5-6 billion

In FY20, India's insurance industry is worth â‚¹7.6 trillion, measured in terms of gross premiums. The industry is expected to grow at a compound annual growth rate of 17.8% to reach $39 trillion ($520 billion) by FY30, with life, life, and health insurance growing at 18.8%, 15.3%, and 13.5%, respectively, the company said in its DRHP.

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