BalrajPB Fintech, the parent firm of online insurance aggregator Policybazaar, has amassed Rs 2,569 crore from 155 anchor investors. In a BSE filing late Friday, the company reported that the anchor investor (AIs) portion of the public issuance of 26,218,079 equity shares had been subscribed at Rs 980 per share, the upper limit of the IPO price band (Rs 940 – Rs 980).
Courtesy: PolicyBazaar via Facebook
Abu Dhabi Investment Authority, American Funds Insurance Series, Blackrock, Canada Pension Plan Investment Board, Goldman Sachs, New World Fund Inc, and Aberdeen Global were among the major global investors who received shares.
Furthermore, 87,90,390 or 33.5 percent of the overall allocation to anchor investors was offered to 18 domestic mutual funds via 69 schemes. The domestic mutual funds include Aditya Birla Sun Life Trustee, HDFC Mutual Fund, SBI Mutual Fund, among others.
The price band for PB Fintech’s initial public offering (IPO) has been fixed at Rs 940-950 per share. The IPO will launch on November 1 and close on November 3. The fintech firm may be valued at more than Rs 44,000 crore, and it is seeking to raise about Rs 5,826 crore. The IPO combines a fresh issue of Rs 3,750 crore as well as an offer for sale (OFS) of Rs 1959.72 crore by existing promoters and shareholders.
SoftBank, led by Masayoshi Son, will sell a percentage of its stake in the fintech startup through an offer for sale (OFS). SoftBank owns 15 percent of the company under SVF Python II and SVF India Holdings (Cayman) Limited.
PB Fintech’s offer for sale (OFS) would represent up to INR 1,875 Crore in shares from SVF Python II (Cayman) Limited, which owns 9.45 percent of the company. SVF India Holdings (Cayman), which owns 6.31 percent of the company, will not liquidate its stake during the offering.
Yashish Dahiya, CEO and co-founder of Policybazaar, owns 4.27 percent of the company and would offload his stakes worth Rs 30 crore in the IPO. Alok Bansal, the company’s co-founder, and CFO will liquidate his shares valued up to Rs 12.75 crore. Bansal holds 1.47 percent in the fintech unicorn
The proceeds from the sale, according to the company, will be used to fund marketing initiatives over the next three years. It also plans to spend Rs 375 crore on strengthening its customer base, including offline presence; Rs 600 crore will be used for strategic acquisitions and investments; Rs 375 crore will be used to expand its operation outside of India, and some portion will be used for general organizational objectives.
The company has appointed Citigroup Global Markets India, HDFC Bank, ICICI Securities, Kotak Mahindra Capital, Morgan Stanley, IIFL Securities, and Jefferies India as book-running lead managers to the issue.