PB Fintech, the determined organization of PolicyBazaar, filed for its much-awaited preliminary public listing recently and the news spread like fire. The company plans to gather Rs 6,017 crore. However, tax specialists have stated earlier that the initial investors of the IPOs of corporations inclusive of Zomato and PolicyBazaar ought to face a 10-15% tax on bonuses.
Online platform Policy Bazaar, provides insurance and has turn out to be the 5th startup to start the manner of listing on stock exchanges of India after Zomato, Paytm, Mobikwik and CarTrade.
Policy Bazaar’s governing company, PB Fintech has filed a draft red herring prospectus with the regulators of the market, the Securities and Exchange Board of India (Sebi), to elevate Rs 6,017 crore via an IPO.
The organization will gain Rs 3,750 crores through issuing new stocks and another Rs 2,267 crore via a secondary sale of stocks through an offer for sale. SoftBank will promote stocks really well worth Rs 1,875 crore.
The Losses for the primarily Gurugram-based organization narrowed to Rupees one hundred fifty crores in Financial Year 2021, from Rs 304 crore in FY20 and Rs 346 crore in FY19, in line with the organization’s IPO documents. The Total earnings also jumped to Rs 957 crore in Financial Year 2021, which is a huge jump as compared to the previous years.
The Capital Will Help The Business In
Of the Rs 3,750 crore Policy Bazaar IPO seeks to gain from the issue:
■ Rs 1,500 crore
Could be used to enhance the visibility and recognition of its manufacturers which includes PolicyBazaar and Paisabazaar via advertising tasks over the following 3 fiscals. The organization spent Rs 367.eight crores on marketing management and merchandising charges in FY21, down from Rs 445.2 crore in FY20.
■ Rs 375 crore
Could be spent on new possibilities to make its client base bigger, which includes enlargement tasks. Recently, Policy Bazaar surrendered its Web-based aggregator license and bought an insurance dealer license from the Insurance Regulatory and Development Authority of India. This will permit the organization to expand and set up its physical reach. Meanwhile, the company also plans to expand the reach of its product and services.
PB Fintech stated it expects to incur huge expenses while putting in and running those physical centers and its purchase network point-of-sales. The organization has already announced 15 physical places of work as of July 15 and is pursuits to have as many as 200 workplaces throughout and by the end of fiscal 2024.
■ Rs 600 crore
Could be spent on strategic plans of investment and acquisitions which might be complementary to its commercial enterprise to enhance its products and service delivering capabilities, set up or enhance its presence in the home ground and markets overseas, and use technology to its advantage.
■ Rs 375 crore
Will be put into increasing its presence out of Indian markets, mainly in areas inclusive of the Middle East and Southeast Asia. The organization presently operates in Dubai via a subsidiary company.
PolicyBazaar could be the second massive organization in Info Edge’s portfolio to move public after Zomato, which had a blockbuster public marketplace debut in the recent past month.