PB Fintech, the parent company Policybazaar and Paisabazaar, has filed a draft red herring prospectus (DRHP) with markets regulator Securities and Exchange Board of India (Sebi), with an aim to raise Rs 6,017.50 crore via an initial public offering (IPO).
The IPO will consist of a fresh issue of shares worth Rs 3,750 crore and an offer for sale of shares to the tune of Rs 2,267.5 crore from investors and existing shareholders.
The selling investors include SVF Python II (Cayman) Limited, which is selling shares worth Rs 1,875 crore, and other shareholders will sell shares worth Rs 392.50 crore, of which Yashish Dahiya, Chairman and CEO of the company, will be selling shares worth Rs 250 crore.
Funds raised from the public offering (fresh issue) will be used to enhance the visibility of and awareness of the brand, including but not limited to Policybazaar and Paisabazaar, new opportunities to expand the consumer base including offline presence, strategic acquisitions, and investments, expand presence outside India, and general corporate purposes, the company said in its DRHP.
It has also mentioned that it may consider a further issue of equity shares by way of private placement aggregating upto Rs 750 crore prior to filing the red herring prospectus with the registrar of companies (RoC).
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.
The company said it has incurred losses to the tune of Rs 150.24 crore in FY21. “We expect our costs to increase over time and our losses will continue given the investments expected towards growing our business”, it said.
In FY20, the company had posted a loss of Rs 304 crore and in FY19 losses were to the tune of Rs 346.8 crore.
The company in its DRHP said it spent Rs 367.84 crore in advertising and promotions in FY21. Similarly, advertising and promotion expenses in FY20 were to the tune of Rs 445.2 crore in Fy20 and 345.85 crore in FY19.