Policybazaar files for Rs.6,017-cr IPO

Online insurance marketplace Policybazaar has filed a draft red herring prospectus with the Securities Exchange Board of India for an initial public offering (IPO) to raise Rs 6,017.50 crore from the market.

With this, Policybazaar joins a growing number of Indian startups looking to raise funds from the capital markets to support the country's booming digital economy.

The IPO will be undertaken by PB Fintech Ltd, the parent of Policybazaar. The issue comprises fresh issue of Rs 3,750 crore worth of equity shares and an offer for sale of Rs 2,267.50 crore by existing shareholders and promoters.

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 others.

The company also proposes to raise Rs 750 crore through placement of shares before the IPO. Information regarding this has already been shared by the company with the regulator.

A major chunk of money raised through the IPO will be used for expansion of the company's operations and for furthering growth plans. Reports suggest that Policybazaar is seeking a valuation of $5.5-6 billion.

Policybazaar is backed by investors such as Softbank, Temasek, Info Edge, Tiger Global Management and Tencent Holdings Ltd., was founded in 2008 to tap vast under-served Indian insurance market.