PolicyBazaar IPO to open on November 1 at Rs 940-980 price band

The initial public offering (IPO) of PB Fintech, the holding company of PolicyBazaar and Paisabazaar, will open for bids on November 1 and close on November 3.

The price band of the IPO has been set at Rs 940-980 per share. The issue size is of 6,07,30,265 shares, with a face value of Rs 2 each, according to the Red Herring Prospectus.

PB Fintech will raise an amount of around Rs 5,709.72 crore, which will comprise Rs 3,750 crore of fresh issues, along with an offer for sale (OFS) of Rs 1,959.72 crore by existing promoters and shareholders.

Kotak Mahindra Capital, Morgan Stanley, ICICI Securities, HDFC Bank Ltd, IIFL Securities, Citigroup Global Markets India, and Jefferies India are the book running lead managers of this IPO.

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The promoters who will be selling shares in the IPO include SVF Python II (Cayman) selling shares worth Rs 1,875 crore; Yashish Dahiya, CEO of PolicyBazaar, worth Rs 30 crore; Alok Bansal worth Rs 12.75 crore; Shikha Dahiya worth Rs 12.50 crore; and Rajendra Singh Kuhar worth Rs 3.50 crore. In addition, Founders United Trust will sell around 2.68 lakh shares, which aggregates to over Rs 26 crore on the upper price band.

PB Fintech, which filed draft papers with Sebi in August, has obtained the regulator's clearance to float the IPO.

As per the draft papers, the firm may consider raising around Rs 750 crore by way of a private placement of equity shares ahead of the IPO.

Proceeds of the fresh issue will be used towards enhancing visibility and awareness of the company's brands, to look for new opportunities to expand growth initiatives to increase the consumer base including offline presence.

The proceeds from the IPO will be used for funding strategic investments and acquisitions, expanding presence outside India, and general corporate purpose.

PB Fintech is the leading 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.