Policybazaar plans IPO to raise up to Rs 6,500 crore

Mumbai: PB Fintech, the mum or dad entity of SoftBank-backed on-line insurance coverage aggregator Policybazaar has authorised a decision to boost as much as Rs 6,500 crore, or $870 million, by way of an preliminary public providing (IPO), making it the fifth Indian startup this 12 months to provoke proceedings to hit the general public markets.

The Policybazaar IPO is anticipated to be a mixture of a recent difficulty of shares and a proposal on the market (OFS), whereby current buyers can promote their stakes straight by means of exchanges, based on the regulatory filings.

In keeping with sources, the corporate is prone to file a Draft Crimson Herring Prospectus (DRHP) with markets regulator Securities and Alternate Board of India (Sebi) quickly because it eyes going public by December this 12 months.

The web insurance coverage aggregator — like Paytm and Zomato — can be anticipated to boost a pre-IPO spherical, which might embody a secondary transaction for current buyers to dilute their stakes.

The Gurugram-based agency’s board authorised the preliminary share sale at a unprecedented basic assembly that was held on July 5, the regulatory filings confirmed. The startup has additionally handed a particular decision to rename as PB Fintech Ltd., changing from personal restricted to public entity.

A Policybazaar spokesperson didn’t instantly reply to ET’s queries. News web site Entrackr
was first to report the Policybazaar IPO decision.

Policybazaar recorded a lack of Rs 218 crore in FY20 in opposition to Rs 213 crore within the earlier fiscal. The monetary outcomes for FY21 aren’t out but. The agency lately acquired an insurance coverage broking licence from The Insurance coverage Regulatory and Improvement Authority of India (IRDAI), which is an improve from its standing as an internet aggregator.

The brand new licence will enable Policybazaar to arrange its bodily community whereas additionally increasing product and repair choices considerably, which embody claims help and point-of-sale community.

Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar based Policybazaar in June 2008. The corporate’s listing of buyers contains Japan’s SoftBank Imaginative and prescient Fund, personal fairness agency True North, Premji Make investments, Tiger International and Temasek, amongst others.