PB Fintech, India’s largest online insurance platform, announced on Tuesday, October 19 that it has received the approval of the Securities and Exchange Board of India to float an initial public offering (IPO) in order to raise Rs. 6,017.50 crores.
PB Fintech, which operates insurance platform Policibazaar and credit tracking and comparison platform Paisabazaar, will offer Rs.3,750 crores worth of fresh equity shares and an Offer for Sale (OFS) worth Rs.2,267 crores by existing selling shareholders as part of the planned IPO.
The draft red herring prospectus filed by PB Fintech disclosed that existing shareholder SVF Python II will sell shares worth Rs.1,875 crores while Yashish Dahiya will sell part of his shares worth Rs. 250 crore as part of the OFS. it also hinted that other selling shareholders will also give up their shares as part of the IPO.
As per the DRHP submitted before the board earlier this year in August, the company is also in talks to raise an additional Rs.750 crores through private placement of equity shares before the planned IPO.
Money raised from the fresh issue of equity shares will be utilised in expanding the company’s visibility and awareness among consumers in the market. PB Fintech is also seeking new opportunities to further develop its consumer base and secure its presence in the offline market.
Meanwhile, the funds raised from the IPO will aid in funding strategic investments and acquisitions to expand the company’s presence in the overseas market.
PB Fintech’s approved IPO is significant for the listed firm Info Edge that holds close to a 14 per cent stake in PB Fintech. The firm is not diluting any stake through OFS part of the public offering but the IPO will grant a benchmark to the cost of the stake that Info Edge holds in the company.