PB Fintech Ltd, the parent of Indian on-line insurance coverage platform Policybazaar, has filed the draft red herring prospectus (DRHP) with capital industry regulator SEBI to launch Rs 6,017.5 crore IPO. PB Fintech Ltd, Policybazaar’s parent, will concern fresh shares worth Rs 3,750 crore and an provide for sale (OFS) of shares worth Rs 2,267.5 crore. The SoftBank Group Corp.-backed startup may well contemplate a private placement of Rs 750 crore, according to DRHP. The OFS will see sale of up to Rs 1,875 crore worth of shares by SVF Python II (Cayman) and up to Rs 392.50 crore by other folks. Policybazaar is backed by marquee investors such as Softbank, Temasek, Info Edge, amongst other folks.
Kotak Mahindra Capital, Morgan Stanley, Citigroup Global Markets India, ICICI Securities, HDFC Bank Ltd, IIFL Securities and Jefferies India are the book operating lead managers to the concern. Link Intime Pvt Ltd is the registrar to the concern. Policybazaar, also backed by Tiger Global Management and Tencent Holdings Ltd., has joined the leagues of other new age world-wide-web businesses such as Zomato, Paytm, Mobikwik, and CarTrade, by filing the IPO papers with the capital industry regulator. There are no listed businesses in India that engage in a small business comparable to that of Policybazaar.
In FY2020, India had a Rs 7.6 trillion (US$ 102 billion) insurance coverage business, measured in terms of total premium. This business is anticipated to develop at a 17.8 per cent CAGR to attain Rs 39 trillion (US$ 520 billion) by FY2030, with life, well being and other non-life insurance coverage developing at 18.8 per cent, 15.3 per cent and 13.5 per cent CAGR, respectively, as per Frost & Sullivan. However, as compared with international peers, India has a extremely underpenetrated insurance coverage industry. The organization has planned to utilise the net proceeds towards enhancing visibility and awareness of its brands, such as but not restricted to Policybazaar and Paisabazaar worth Rs 1,500 crore, new possibilities to expand development initiatives to raise its customer base such as offline presence worth Rs 375 crore, funding strategic investments and acquisitions worth Rs 600 crore, expanding presence outdoors India worth Rs 375 crore and for basic corporate purposes.
The weighted typical return on net worth stands at 23.57 per cent. As on March 31, 2021, net asset worth per equity shares was Rs 54.52. The organization stated that the current lockdowns and restrictions in response to the second wave had severely impacted the sales of its Insurer Partners’ travel insurance coverage items, resulting in a reduce in demand for travel insurance coverage items sold via Policybazaar platform in Fiscals 2021 and 2020, as properly as company’s potential to service shoppers in particular person, such as organising healthcare verify-ups.
PB Fintech operates in India’s dynamic and competitive fintech business, exactly where its Policybazaar platform operates in India’s on-line insurance coverage solution and service business, although Paisabazaar platform operates in India’s on-line credit business. These industries are fairly new, and small business models continue to evolve.