Policybazaar files for mega Rs 6,017 cr IPO, aims at $5.5-$6 bn valuation

Policybazaar has filed papers with the Securities and Exchange Board of India (SEBI) to raise Rs 6,017 crore through a mega IPO. 

The online insurance marketplace which is backed by marquee investors such as Info Edge, Premji Invest, Softbank, Tiger Global and Temasek, is targeting a valuation between $5.5 billion to $6 billion.

"The DRHP has been filed with the regulator. The fresh issue component is around Rs 3,700 crores which will be utilised for expansion plans and as growth capital. The balance is the OFS or offer for sale component," a source told Moneycontrol. 

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The OFS part will mostly be led by Softbank, another source stated adding that HDFC, Jefferies, and IIFL Securities are also part of the pool of i-bankers working on the deal.

Shardul Amarchand Mangaldas is the company's counsel, Cyril Amarchand Mangaldas is the counsel to the bankers, whereas Latham and Watkins and Linklaters are international legal counsels, other sources told the publication.

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Besides the above-mentioned marquee investors, Policybazaar's long list of backers also comprises Ribbit Capital, True North, Inventus, True North, Chiratae Ventures & Wellington Management.

The online insurance aggregator's listing plans come on the back of a steep spike in the demand for online life and health insurance products post the COVID-19 outbreak.