Mumbai-based insurtech platform Turtlemint Fintech Solutions has filed a Pre-Filed draft red herring prospectus with the SEBI and stock exchanges on September 4 to raise funds via an initial public offering.
"The filing of the Pre-filed draft red herring prospectus shall not necessarily mean that the company will undertake the initial public offering," the company, in its public announcement published in a business newspaper, said.
The technology-led platform connects customers, insurance advisors, and insurance companies, distributing health, life, and motor insurance products. It also offers other financial products, such as mutual funds and loans, through its platform.
Moneycontrol was the first to report in August this year that Turtlemint converted into a public limited company and is expected to file its draft red herring prospectus soon. It is looking to raise up to Rs 2,000 crore through the share sale.
Founded by Dhirendra Nalin Mahyavanshi and Anand Rohidas Prabhudesai, the platform claims to have facilitated the distribution of over 1.6 crore insurance policies across 19,105 pin codes through a network of more than 4 lakh POSPs (point of sales persons) during the fiscal years 2023-2025. It has partnered with more than 42 insurer partners and over 4.3 lakh trained insurance advisors.
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Turtlemint is backed by marquee investors like Nexus Venture Partners, Jungle Ventures, Peak XV Partners (earlier Sequoia Capital India), and Blume Ventures.
Many companies preferred this confidential pre-filing route in the past, like Swiggy, Vishal Mega Mart, boAt, Shadowfax, etc. According to recent reports of Moneycontrol, Walmart-backed payments major PhonePe is also expected to opt for the confidential filing route and file for an IPO by the end of September this year.
Market experts believe that the confidential pre-filing route provides flexibility and reduces pressure on companies to go public. This allows the company to interact with a limited number of institutional investors before going public. Unlike the traditional route, where IPOs must be launched within 12 months of SEBI's approval, the pre-filing route allows companies to float an IPO within 18 months from SEBI's final comments.
This route also offers the flexibility to adjust the primary issue size by up to 50 percent until the Updated Draft Red Herring Prospectus (UDRHP) stage, they added.
Turtlemint competes with the listed peer PB Fintech, the parent of Policybazaar, which had raised Rs 5,710 crore through an initial public offering in November 2021. It traded 86 percent higher to its issue price of Rs 980 per share.
Niva Bupa Health Insurance Company and Go Digit General Insurance were the latest IPOs from the insurance sector. Both launched in 2024, raising Rs 2,200 crore and Rs 2,615 crore, respectively.
Niva Bupa shares traded 14 percent higher to the issue price of Rs 74 per share, while Go Digit gained 30 percent over the offer price of Rs 272.
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