Softbank will make $250 million by selling a fifth of its stake in Policybazaar

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Softbank will make $250 million by selling a fifth of its stake in Policybazaar
BCCL/BI India
  • SoftBank owns about 13% stake in the IPO-bound company and is its largest shareholder.
  • PB Fintech, which is the parent entity PolicyBazaar and PaisaBazaar, will be launching its IPO on November 1.
  • SoftBank will be selling shares worth ₹1,875 crore, as per PB Fintech’s RHP.
SoftBank will sell 20% of its shareholdings in PolicyBazaar’s initial public offering (IPO), scheduled for next week, the company said in a press conference held today (October 27).

The Masayoshi Son-led investment firm— which has been an investor in PolicyBazaar since 2018 — owns about 13% stake in the IPO-bound company and is its largest shareholder.

PB Fintech, which is the parent entity of insurance company PolicyBazaar and lending startup PaisaBazaar, will be launching its IPO on November 1.

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The issue size of the IPO is ₹5,709 crore consisting of a fresh issue of ₹3,759 crore and an offer for sale (OFS) of ₹1,959 crore by its existing shareholders.

The company will offer shares within a price band of ₹940-₹980 pre share. The lot size is 15 shares.

As per the red herring prospectus, SoftBank will be selling shares worth ₹1,875 crore ($250 million). Yashish Dahiya — the chief executive of PB Fintech — will be selling shares worth ₹30 crore. Meanwhile, cofounder and chief financial officer (CFO) Alok Bansal will be selling shares worth ₹12.75 crore.

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India’s largest online insurance aggregator, PolicyBazaar, was launched in 2008. It is one of the biggest beneficiaries of the boom in India’s insurance sector as a market leader in selling insurance online.

The company intends to use the proceeds from the public issue to expand its consumer base both online and offline, strategic acquisitions and investments, international expansion and other corporate purposes.

Dahaiya, in a press conference, also highlighted that they have launched operations in Dubai as a significant population from India migrated to the United Arab Emirates (UAE) for work. These people can benefit from PolicyBazaar’s offering. “Dubai is an interesting place to start a business and it is doing well,” he added.

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