India’s largest online insurance aggregator Policybazaar, which is backed by a host of marquee investors such as Softbank, Temasek, Info Edge, Tiger Global and Premji Invest, has filed papers with the market regulator Sebi to raise Rs 6,017.5 crores through a mega initial public offering the latest Indian startup looking to list on stock exchanges.
The IPO will comprise a fresh issue of Rs 3,750 crore and an offer for sale (OFS) of Rs 2,267.5 crores.
The company will utilise approximately Rs 1,500 crore from the funds raised through the market for "enhancing the visibility" of its brands, according to the draft red herring prospects(DRHP). It also said that the funds will be utilised for expanding growth initiatives to increase the consumer base, including offline presence, funding investments and new acquisitions, and for expansion outside India.
Moneycontrol was the first to write about the DRHP as well as the IPO plans. Earlier on February 21, 2021 Moneycontrol had also reported that the firm had picked Kotak Mahindra Capital, Morgan Stanley, ICICI Securities and Citi as advisors for the listing.
Also read: Exclusive: Policybazaar aims to file DRHP for IPO in July, eyes $4-5 billion valuation
Policybazaar is housed under Etech Aces Marketing & Consulting, which also houses lending marketplace Paisabazaar. Other than heavyweights Softbank, Temasek, Info Edge, Premji Invest and Tiger Global, the firm’s long list of investors also includes True North, Steadview Capital, Ribbit Capital, Inventus, Chiratae Ventures & Wellington Management.
Also read: SoftBank, Temasek-backed Policybazaar may pick Kotak, Morgan Stanley, I-Sec, Citi as i-bankers for mega 2021 IPO
Its listing plans come on the back of a sharp spike in the demand for online health and life insurance products after the outbreak of Covid-19. It offers products in segments ranging from life insurance (it claims to account for 25 percent of India’s life cover), investment plans, health insurance, motor insurance, general insurance, travel insurance and others.
According to its website, it hit 10 million unique customers in FY 19, sells 4 lakh insurance policies a month and has 40 plus insurers on its platform.