CPPIB, ADIA, Kotak and others come in as anchors for PB Fintech IPO
Photo Credit: VCCircle

PB Fintech, the operator of Policybazaar and Paisabazaar, has mopped up Rs 2,569.37 crore from 155 anchor investors including Canada Pension Plan Investment Board (CPPIB), Abu Dhabi Investment Authority (ADIA), US investment firm Fidelity, Tiger Global Investments Fund and Kotak’s pre-IPO Opportunities Fund. 

Other marquee investors that participated in the anchor book were Edelweiss Crossover Series III Fund, Elara Capital, Morgan Stanley Asia, New World Fund Inc, Schroder Fund, American Funds Insurance Series, Blackrock, Steadview Capital, Nomura, WF Asian Smaller Companies Fund and Goldman Sachs among others. 

The Gurugram-based company allocated 2,62,18,079 (2.62 crore) equity shares to the anchor investors at a price of Rs 980 per share on October 29, a day ahead of IPO opening, PB Fintech said in its BSE filing. 

Domestic investors that participated in the anchor investment include insurance aggregator and consumer credit companies including HDFC MF, ICICI Prudential, SBI MF, Axis MF, Aditya Birla Sun Life Trustee, Kotak Mutual Fund, Nippon Life, UTI MF, Franklin MF, DSP MF, Bajaj Allianz Life Insurance, HDFC Life Insurance, SBI Life Insurance, and Max Life Insurance. 

PB Fintech is planning to garner around Rs 5,700 crore through its initial public offering (IPO) that consists of a fresh issue of Rs 3,750 crore, and an offer for sale of Rs 1,875 crore by investor SVF Python II (Cayman) and other selling shareholders. 

SVF Python II (Cayman) holds 9.45% stake, and co-founders Yashish Dahiya and Alok Bansal own 4.27% and 1.45% stake, respectively. 

Formerly known as Etechaces Marketing and Consulting Pvt Ltd, PB Fintech has said it will use the proceeds from the issue worth Rs 1500 crore towards enhancing visibility and awareness of its brands including but not limited to Policybazaar and Paisabazaar. 

Another Rs 375 crore will be used for new opportunities to expand growth initiatives to increase its consumer base including offline presence, Rs 600 crore will be used for funding strategic investments and acquisitions and Rs 375 crore for expanding its presence outside India. 

This week, VCCircle reported that it has created an ESOP (employee stock options plan) pool of over $510 million (Rs 3,783 crore).  

Dahiya, chief executive officer, and Bansal, chief financial officer, together hold over 2.5 crore employee stock options out of the aggregate of over 3 crore held by the top-nine executives. 

Their stock options alone are valued at about Rs 2,500 crore ($338 million) at the upper end of the set IPO price band of Rs 940-980 apiece. 

PB Fintech’s consolidated operating revenues grew about 15% from Rs 772 crore in FY20 to Rs 887 crore in FY21. Its net losses have halved from over Rs 304 crore in FY20 to Rs 150 crore in FY21. 

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