PB Fintech Ltd, parent of India’s largest online insurance aggregator Policybazaar, has filed draft papers with market regulator SEBI to raise ₹6,017.50 crore via an initial public offering (IPO).
The IPO comprises fresh issue of equity worth ₹3,750 crore and an offer for sale of ₹2,267.50 crore by existing shareholders and promoters.
Policybazaar, which is backed by marquee investors including Softbank, Temasek, Info Edge, Tiger Global and Premji Invest, is now joining a growing list of tech based start-ups that are looking to tap the IPO market over the next 18 months by riding on the ongoing digital boom in the country.
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The other investors includes True North, Steadview Capital, Inventus and Wellington Management.
Policybazaar, which was founded in 2008 and now has over 40 insurers on its platform, had hit 10 million unique customers in FY19. Policybazaar allows users to compare features and prices of insurance products related to life, health, travel, property and auto on its platform.
PB Fintech, which also owns Paisabazaar.com, an online credit comparison portal, is now eyeing a valuation of $5.5-6 billion through the IPO.
For the proposed IPO, Kotak Mahindra Capital Company, Morgan Stanley India, Citigroup Global Markets India, ICICI Securities, HDFC Bank Ltd, IIFL Securities and Jeffries India are the book running lead managers to the issue.
PB Fintech is also looking to raise about ₹750 crore by way of a private placement of equity shares ahead of the IPO. The recent strong response to Zomato IPO and its 80 per cent gains on listing day has raised interest around tech based start-ups among retail investors.