Policybazaar parent company PB Fintech’s IPO is set to open next week. Online insurance aggregator and fintech platform Policybazaar is looking to raise Rs 3,750 crore from a fresh issue of equity shares and more than Rs 1,900 crore from an offer for sale (OFS) by existing shareholders of the company. PB Fintech also runs fintech platform Paisabazzar, along with Policybazaar. The company had received SEBI’s green light for the public issue earlier this month. So far this financial year, 25 companies have successfully raised funds from the primary market.
PB Fintech’s is offering shares in the price band of Rs 940-980 per equity share of face value Rs 2. The issue will open on Monday, November 1 and close on Wednesday, November 3. Investors looking to buy shares of the company can bid for the IPO in a minimum bid lot of 15 shares, translating to a minimum investment of Rs 14,700 per investor.
Mix of fresh issue and OFS
Of the entire issue, Rs 3,750 crore is a fresh issue of equity shares while an offer for sale by existing shareholders will be worth more than Rs 1,900 crore. Among the selling shareholders, SVF Python II (Cayman) Limited is the investor selling shareholder, selling shares worth Rs 1,875 crore. Yashish Dahiya will sell shares worth not more than Rs 30 crore, Alok Bansal will sell a stake worth Rs 12.75 crore. Additionally, Shikha Dahiya will sell shares worth Rs 12.25 crore, and Rajendra Singh Kuhar the other selling shareholder will sell shares worth Rs 3.5 crore. Founder United Trust will also sell 2,67,500 equity shares that are valued at Rs 26.21 crore on the higher end of the price band.
Utilisation of funds
The company plans to use Rs 1,500 crore raised from the fresh issue to enhance visibility and awareness of the brand. PB Fintech, in the RHP said that it will use Rs 375 crore to explore new opportunities to expand growth, while Rs 600 crore will be used to fund strategic investments and acquisitions, and another Rs 375 crore for the expansion of the company outside India.
Of the entire issue, 75% will be reserved for Qualified Institutional Buyers (QIB) and 15% for non-institutional investors, while Retail investors will be eligible to bid for just 10% of the entire issue. Morgan Stanley, Kotak Mahindra Capital, ICICI Securities, HDFC Bank, IIFL Securities, Citigroup Global Markets, and Jefferies India are the book running lead managers for the IPO.