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

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

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

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

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

Proceeds of the fresh issue will be used towards enhancing visibility and awareness of the company’s brands, to look for new opportunities to expand growth initiatives to increase the consumer base including offline presence.

Also, the proceeds from the IPO will be used for funding strategic investments and acquisitions, expanding presence outside India and general corporate purpose.

Kotak Mahindra Capital Company,Morgan Stanley India Company, 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 lending products, leveraging the power of technology, data and innovation. They provide convenient access to insurance, credit and other financial products and aim to create awareness amongst Indian households about the financial impact of death, disease and damage.

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, among others. It is seeking a valuation of $5.5-6 billion

In FY20, India’s insurance industry is worth 7.6 trillion, measured in terms of total premium. This industry is expected to grow at a 17.8% CAGR to reach 39 trillion (US$520 billion) by FY30, with life, health and other general insurance growing at 18.8%, 15.3% and 13.5% CAGR respectively, the company said in its DRHP.

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