The Twin Fintech IPO towers: Fino Payments and PolicyBazaar file DRHP with SEBI

After a successful IPO of Zomato, many small and big investors are gearing up for other internet companies' startups. Amid the hype of payment decacorn Paytm's IPO hype, other internet companies are gearing up for public listing. Fino Payments and PolicyBazaar have also filed their DRHP statements with SEBI.

Fino Payments IPO

Blackstone, ICICI Group, Bharat Petroleum, and IFC-backed Fino Payments Bank has filed a DRHP with SEBI for an IPO consisting of a fresh issue of INR 300 crore (total fundraise may cross INR 1300 crores, sources state). Further, it will offer for sale of upto 15.60 million shares by Fino Paytech Ltd. According to the DRHP, Axis Capital, CLSA Capital, ICICI Securities, and Nomura Financial Advisory and Securities are the book running lead managers to the issue.

The company has announced that it will use the capital to augment its tier I capital base and meet future requirements. In the DRHP paper, the bank said its aims to on the use of technology throughout its business. Tech will be a significant factor in improving operating leverage to improve the company's gross margins and limit variable costs.

Its products and services will include various current accounts and savings accounts. It will also issue debit cards and related transactions, facilitate domestic remittances, open banking functionality via API. Further, it will allow withdrawal and depositing of cash via micro-ATM or AePS and CMS.

PolicyBazaar IPO

Softbank, Info Edge, and Tiger Global-backed, Insurtech startup PolicyBazaar has filed IPO papers with SEBI for an INR 6017 crores issue. The firm also said it is in consultation with its book-running lead managers to raise around Rs 750 crore through a private placement of equity shares ahead of the IPO. 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.

PB Fintech Ltd, the parent of Policybazaar, in its DRHP said to have asked for an INR 6,017.5 crore IPO. PB Fintech also holds Paisabazaar, which is an online credit comparison portal and other portals - B2B venture and ZPhin. The Policybazaar’s parent will issue fresh shares worth Rs 3,750 crore and OFS shares worth INR 2,267.5 crore. The OFS will further see a sale of up to INR 1,875 crore worth of shares by Softbank. Other investors will get OFS up to INR 392.50 crore.

Interestingly, there are no listed companies in India in the insurance aggregation segment.

With their IPO papers, Fino Payments and Policybazaar join the leagues of Zomato, Paytm, Mobikwik, and CarTrade.