PB Fintech Ltd, the owner of online marketplaces Policybazaar and Paisabazaar, has set price band for its initial public offering at ₹940-980 a share. Earlier, the firm said its IPO will open on 1 November for subscription and close on 3 November. The firm planning to list on 15 November.
The firm will raise around ₹5709.72 crore. The IPO consisted of a fresh issue of ₹3,750 crore and an offer for sale of ₹1959.72 crore by its existing shareholders and promoters.
An OFS comprises sale of upto Rs1875 crore by SVF Python II (Cayman), ₹30 crore by Yashish Dahiya, ₹12.75 crore by Alok Bansal, upto ₹12.50 crore by Shikha Dahiya and ₹3.50 crore by Rajendra Singh Kuhar. Founder United Trust will sell around 2.68 lakh shares and on upper band price it comes around ₹26.22 crore.
As on date of this DRHP, SVF Python II (Cayman) holds 9.45% stake, Yashish Dahiya holds 4.27% stake in the firm, Alok Bansal 1.45% stake.
Kotak Mahindra Capital, Morgan Stanley, Citigroup Global Markets India, ICICI Securities, HDFC Bank Ltd, IIFL Securities and Jefferies India are the book running lead managers to the issue.
The proceeds from the issue worth ₹1500 crore will be used to enhancing visibility and awareness of its brands including but not limited to Policybazaar and Paisabazaar, ₹375 crore will be used for new opportunities to expand growth initiatives to increase its consumer base including offline presence, ₹600 crore will be used for funding strategic investments and acquisitions and ₹375 crore for expanding its presence outside India.
"We plan to continue investing in our brands on mediums such as television, while also expanding our marketing presence to capture shifts in consumers’ media consumption habits, such as in social media, digital media and embedded advertisements", the company said in a DRHP.
The firm is India’s largest online platform for insurance and lending products leveraging the power of technology, data and innovation. It provides convenient access to insurance, credit and other financial products and aims to create awareness amongst Indian households about the financial impact of death, disease and damage.
In Fiscal 2020, Policybazaar was India’s largest digital insurance marketplace with a 93.4% market share based on the number of policies sold. Furthermore, 65.3% of all digital insurance sales in India by volume was transacted through Policybazaar.
For FY21, 51 Insurer Partners have offered over 340 term, health, motor, home and travel insurance products on our Policybazaar platform , representing a substantial portion of all licensed insurance companies in India. In the same period, 3.7 million policies, representing 80.4% of the new policies sold through its Policybazaar platform, were sold with minimal human assistance.
Paisabazaar was India’s largest digital consumer credit marketplace with a 51.4% market share, based on disbursals in Fiscal 2020. Paisabazaar is also widely used to access credit scores, with approximately 21.5 million Consumers cumulatively having accessed their credit score through its platform as of Mar 2021. As of Mar 2021, around 21.5 million unique consumers have assessed its credit score from Paisabazaar. In FY21 Paisabazaar enabled disbursals of ₹29.17 billion against ₹65.50 billion a year ago.
For fiscal year 2021, it reported revenue from operations of ₹886.66 crore against ₹771.30 crore a year ago. Net loss for the period narrowed at ₹150.02 crore from ₹3040.03 crore a year ago.
The firm said as a result of the second wave of COVID-19 in India and the lockdowns and restrictions imposed in response, it experienced a decrease in demand for travel and other insurance products and lower disbursal of loans on its platforms during the quarter ended June, 2021 which will result in lower revenue during such period compared to the quarter ended March, 2021.
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Policybazaar IPO launch date announced: Price band, other details here - Mint
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