Policybazaar IPO To Open Next Week; Check Price Band, Other Details

The initial public offering (IPO) of Policybazaar parent firm PB Fintech is slated to begin next week. Policybazaar, an online insurance aggregator and fintech platform, plans to raise Rs 3,750 crore through a new equity share offering and more than Rs 1,900 crore through an offer for sale (OFS) by current shareholders.

PB Fintech is India's most popular online insurance and loan platform. The company intends to raise awareness in India about the financial consequences of death, disease, and destruction by providing easy access to insurance, credit, and other financial goods.

For its first public offering, PB Fintech Ltd, the owner of online platforms Policybazaar and Paisabazaar, has set a price range of Rs 940-980 per share. Earlier on Tuesday, the company announced that its initial public offering (IPO) will begin on November 1 and end on November 3. The firm intends to go public on November 15th.

The company plans to raise Rs 5,709.72 crore via its IPO, which would include a fresh issue of 3,750 crore and a 19,59.72 crore offer for sale (OFS).

A fresh issue of equity shares worth Rs 3,750 crore will be part of the total issue, while an offer for sale by existing shareholders would be worth more than Rs 1,900 crore.

The investor selling shareholder is SVF Python II (Cayman) Limited, which is selling shares for Rs 1,875 crore.
Alok Bansal would sell a stake worth Rs 12.75 crore, while Yashish Dahiya will sell a stake worth Rs 30 crore.
Shikha Dahiya will also sell Rs 12.25 crore worth of shares, while Rajendra Singh Kuhar, the other selling stakeholder, would sell Rs 3.5 crore worth of shares.

On the top end of the pricing range, Founder United Trust would sell 2,67,500 equity shares worth Rs 26.21 crore.

The company intends to use the Rs 1,500 crore obtained from the new issue to increase brand recognition and awareness. In the RHP, PB Fintech stated that it will invest Rs 375 crore to investigate new growth prospects, Rs 600 crore to fund strategic investments and acquisitions, and another Rs 375 crore to expand the company outside of India.

Qualified Institutional Buyers (QIB) will be allowed to buy for 75% of the offer, while non-institutional investors will be eligible to bid for 15%. Retail investors will be eligible to bid for just 10% of the issue.

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

IPO Opening Date	Nov 1, 2021
IPO Closing Date	Nov 3, 2021
Issue Type	Book Built Issue IPO
Face Value	₹2 per equity share
IPO Price	₹940 to ₹980 per equity share
Market Lot	15 Shares
Min Order Quantity	15 Shares
Listing At	BSE, NSE
Basis of Allotment Date	Nov 10, 2021
Initiation of Refunds	Nov 11, 2021
Credit of Shares to Demat Account	Nov 12, 2021
IPO Listing Date	Nov 15, 2021