Policybazaar plans to raise $850 million through IPO

Online insurance marketplace Policybazaar has received approval from its parent entity PB Fintech to raise up to $850 million (₹6,500 crore) through an IPO citing the RoC filings. A resolution has been passed to convert the company from private limited to public entity, the report says. Policybazaar is targeting to list in the public markets by December at a $4-$5 billion valuation. Several reports suggest that PolicyBazaar could be valued at more than $3.5 billion in its IPO.

The Policybazaar IPO is expected to be a mix of fresh shares and an offer for sale, through which existing investors can exit. This is similar to Paytm’s proposed public offer set for later this year.

PB Fintech is likely to file a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) soon eyeing a December listing, said people with knowledge of the matter. As with Paytm and Zomato, the company indicated that it could hold a pre-IPO funding round.

“The firm has hired three-four investment bankers to oversee the compliance process and is targeting a valuation of $4- 5 billion,” said a source aware of the matter. “The management is eyeing an IPO launch before December 2021. They are also in advanced stages of finishing paperwork for filing the DRHP with Sebi.”

The parent has passed a special resolution renaming itself PB Fintech Ltd. as part of converting into a public entity from a private one. In a separate filing, the company has altered its Articles of Association to smoothen its public listing in accordance with the Companies Act.