Things to know about PolicyBazaar before placing a bet on its IPO
- PolicyBazaar is looking to raise ₹5,709 crore through this IPO, at a valuation of $6 billion.
- SoftBank will sell 20% of its shareholdings in PolicyBazaar’s IPO for $250 million.
- PB Fintech reported a revenue of ₹957 crore in the financial year 2021, with losses reaching ₹150 crore.
Issue size, price band and more
The issue size of PolicyBazaar’s IPO is ₹5,709 crore consisting of a fresh issue of ₹3,759 crore and an offer for sale (OFS) of ₹1,959 crore by its existing shareholders.
The company will offer shares within a price band of ₹940-₹980 pre share, with a lot size of 15 shares. The allotment will be announced November 10 and the IPO will be listed on November 15.
SoftBank to make $250 million from PB Fintech’s IPO
SoftBank will sell 20% of its shareholdings in PolicyBazaar’s IPO, scheduled for next week. The Masayoshi Son-led investment firm — which has been an investor in PolicyBazaar since 2018 — owns about 13% stake in the IPO-bound company and is its largest shareholder.
As per the red herring prospectus, SoftBank will be selling shares worth ₹1,875 crore ($250 million). PB Fintech’s chief executive officer (CEO) Yashish Dahiya will be selling shares worth ₹30 crore ($4 million) and chief financial officer (CFO) Alok Bansal will be selling shares worth ₹12.75 crore ($1.7 million).
The proceeds will go towards branding, international expansion
PB Fintech will use the proceeds from the upcoming IPO for marketing of PolicyBazaar and PaisaBazaar. The company has decided to allocate ₹1500 crore of the proceeds for increasing brand awareness.
Besides this, PolicyBazaar will also invest an additional ₹600 crore on funding strategic investments and acquisition. About ₹375 crore will be used to increase the company’s customer base both online and offline.
Another ₹375 crore would be invested to enhance PB Fintech’s presence across international markets. The company already has a presence in the Dubai market but has not decided to venture into other markets yet, the company said in a press conference on October 28.
PolicyBazaar’s parent reported a revenue of ₹957 crore
PB Fintech reported a revenue of ₹957 crore in the financial year 2021, with losses reaching ₹150 crore. Compared to last year, the company has cut its losses by half. It spent ₹209.9 crore on employee benefits and ₹106 crore on advertising.
The fintech startup reported a revenue of ₹258 crore in the April-June quarter of 2021, it’s losses were at ₹110.8 crore.
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