PB Fintech files papers for  60 billion public share sale

By Leandra Monteiro

Gurgaon-based Indian InsurTech Policybazaar’s parent company PB Fintech, on Monday filed draft share sale documents with the Securities and Exchange Board of India (Sebi) for a INR 60.175 billion initial public offering. PolicyBazaar and PaisaBazaar are parts of the same franchise- PB Fintech. However, they deal in entirely different markets.

PB Fintech IPO consists of fresh issuance worth INR 37.5 billion and a INR 22.675 billion offer for sale (OFS) by existing shareholders. This includes SoftBank Vision Fund Python, which has a 9.75 per cent stake. China’s Tencent, which owns over 9 per cent stake, is unlikely to offload its stake.

Founders United Trust, an investment venture formerly backed by industry bigwigs such as Sequoia India’s Rajan Anandan, MakeMyTrip’s Deep Kalra and ChrysCapital’s Ashish Dhawan, will also be selling a stake worth INR 275 million.

Kotak Mahindra Capital, Morgan Stanley, 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, also backed by Tiger Global Management and Tencent Holdings Ltd., has joined the leagues of other digital companies such as Zomato, Paytm, Mobikwik, and CarTrade, by filing the IPO papers SEBI.

PB Fintech plans to allocate INR 15 billion from the issue to improve visibility and awareness of its brands. An additional INR 3.75 billion and INR 6 billion from the issue proceeds will be used to facilitate expansion plans as well as for funding strategic acquisitions. Policybazaar will also be using INR 3.75 billion from the issue for expanding its global presence.