Policybazaar targets IPO to raise Rs 6,017 crore

Online insurance marketplace Policybazaar has filed a draft red herring prospectus with the Securities Exchange Board of India for an initial public offering (IPO) to raise Rs 6,017.50 crore.
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The IPO will be undertaken by PB Fintech, the parent of Policybazaar. The issue comprises fresh issue of Rs 3,750 crore worth of equity shares and an offer for sale of Rs 2,267.50 crore by existing shareholders and promoters.

The OFS will see sale of up to Rs 1,875 crore worth of shares by SVF Python II (Cayman) and up to Rs 392.50 crore by others.

The company also proposes to raise Rs 750 crore through placement of shares before the IPO.

Policybazaar will use a major chunk of money raised through the IPO for expansion of the company’s operations and for furthering growth plans.

Reports suggest that Policybazaar is seeking a valuation of $5.5-6 billion.

Investors such as Softbank, Temasek, Info Edge, Tiger Global Management and Tencent Holdings are the main investors in Policybazaar.

Policybazaar provides its customers choice of policies at different price points and helps them in making an informed decision on insurance.