Policybazaar parent firm’s IPO to open next week: All you need to know

Proceeds of the fresh issue will be used towards enhancing visibility and awareness of the company's brands

The Rs 5,710-crore IPO comprises a fresh issue of Rs 3,750 crore worth of equity shares and an offer for sale of about Rs 1,960 crore by existing shareholders. Credit: iStock Photo

PB Fintech, which operates online insurance platform Policybazaar and credit comparison portal Paisabazaar, on Wednesday fixed a price band of Rs 940-980 a share for its Rs 5,710-crore initial share sale, which will open on November 1.

Here's all you need to know:

The three-day initial public offering (IPO) will conclude on November 3, the company announced in a virtual press conference.

The Rs 5,710-crore IPO comprises a fresh issue of Rs 3,750 crore worth of equity shares and an offer for sale of about Rs 1,960 crore by existing shareholders.

As part of the offer for sale (OFS), SVF Python II (Cayman) will sell shares worth Rs 1,875 crore, Yashish Dahiya will offload shares worth Rs 30 crore, Alok Bansal will divest shares worth Rs 12.75 crore, Shikha Dahiya will sell shares to the tune of Rs 12.25 crore and Rajendra Singh Kuhar will offload shares worth Rs 3.5 crore.

In addition, Founder United Trust will sell around 2,67,500 shares and on upper band price it come around Rs 26.21 crore.

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Of the entire issue, 75 per cent will be reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.

Investors can bid for a minimum of 15 equity shares and in multiples of 15 equity shares thereafter.

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.

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

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

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 aim to create awareness amongst Indian households about the financial impact of death, disease and damage.