Policy Bazaar IPO: News, Release date and many more

On October 26, PB Fintech, the company behind the internet insurance aggregator Policybazaar, announced the dates for its planned initial public offering (IPO). In a red herring prospectus, the business stated that the offering would begin on November 1.

The IPO will close on November 3rd, with a November 10th deadline for finalizing the basis of allotment with the stock exchange.

The initial public offering’s price range has been established at Rs 940-980 per share. The total number of shares in the offer is 6,07,30,265 with a face value of Rs 2 apiece.

The dates for the start of reimbursements and the crediting of shares were November 11 and 12, respectively.

According to estimates, PB Fintech would collect roughly Rs 5709.72 crore through the public offering, which includes a fresh issue of Rs 3,750 crore and an offer for sale (OFS) of Rs 1959.72 crore by existing promoters and shareholders.

SVF Python II (Cayman), an investor, will spearhead the OFS, which will offer shares worth Rs 1,875 crore. Cayman currently owns 9.45 percent of the company.

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

The Securities and Exchange Board of India (Sebi) gave PB Fintech the go-light to float its first public offering last week.

Over 4.8 crore clients had enrolled on the Policybazaar platform as of March 2021, and over 1.9 crore policies had been acquired from insurer partners. The annual number of visitors to Policybazaar.com was 12.65 crore in FY21.

Public Issue

The company is planning a Rs 6,017.5 crore public offering, which will include a fresh issue of Rs 3,750 crore and a Rs 2,267.5 crore offer for sale by existing selling shareholders.

Investor SVF Python II (Cayman) is selling Rs 1,875 crore worth of shares, while other selling shareholders are selling Rs 392.5 crore worth of shares.

Pre-IPO Placement

In discussions with the merchant bankers, PB Fintech may contemplate a private placement of equity shares worth up to Rs 750 crore. If a pre-IPO placement is carried out, the size of the new issue will be lowered by the amount raised from the pre-IPO placement.

Company Profile

According to Frost & Sullivan, PB Fintech has created India’s largest online platform for insurance and lending products by using the power of technology, data, and innovation.

Policybazaar, the company’s primary platform, was developed in 2008 in response to consumers’ need for more awareness, choice, and transparency, and to create a consumer-pull-based, provider-neutral insurance distribution model. Policybazaar was India’s largest digital insurance marketplace in FY20, with a market share of 93.4 percent based on the number of policies sold, and 65.3 percent of all digital insurance sales in India by volume.

Over 4.8 crore clients had enrolled on the Policybazaar platform as of March 2021, and over 1.9 crore policies had been acquired from insurer partners. The annual number of visitors to the Policybazaar website was 12.65 crore in FY21.

Strengths

1. The company has developed powerful, consumer-friendly brands that provide a wide range of options, transparency, and ease of use.
2. By automating various components across the product value chain, the company’s proprietary technology stack assists it in designing user-friendly consumer journeys across all processes.
3. For insurers and lending partners, it is a collaborative partner.
4. Consumers can browse financial services products offered by 51 insurer partners and 54 loan partners on the Policybazaar platform, which offers broad, efficient, and intelligent networks.
5. Its strong renewal rates give it a clear picture of future revenue while also delivering superior economics.
6. Consumers with various demands, credit profiles, demographics, employment types, and income levels are served by the Policybazaar platform. Micro-segmentation has aided in the expansion of platform product offerings, the streamlining of transaction procedures, the strengthening of ties with insurers and lending partners, and the provision of tailored financial services solutions for various segments.
7. It has a capital-efficient business model with low operational expenses.
8. Its founders have a thorough awareness of the problems that consumers face as well as the structural issues that plague the insurance and financial services industries. It has nearly two decades of experience and dedication to solving those difficulties, as well as a thorough understanding of consumer insights and technological advancements.

Principal Shareholders and Investors

PB Fintech is a professionally managed business with no identified promoters. The corporation currently has 192 stockholders.

Makesense Technologies, Tiger Global Eight Holdings, PI Opportunities Fund, SVF Python, Tencent Cloud Europe, Claymore Investment, Falcon, Steadview Capital Mauritius, True North Fund, Startup Investments, Inventus Capital Partners Fund, ABG Capital, and Alpha Wave Incubation LP are among the company’s shareholders.

When the Amalgamation Scheme receives National Company Law Tribunal (NCLT) approval and becomes effective, the company will allow its equity shares proportionately to Info Edge (India) and Macritchie Investment Pte Ltd, while all equity shares owned by Makesense in the company will be canceled.