PolicyBazaar currently hosts over 100 million visitors a year. Credit: F1 Digitals from Pixabay.

Indian online insurance platform Policybazaar has filed its draft red herring prospectus with the regulator SEBI for its initial public offering to raise $809.36m.

The IPO involves an issue of fresh shares worth more than $504m and existing investors will offload shares worth approximately $305m.

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Softbank plans to sell its shares worth over $250m and PolicyBazaar founders will offload shares worth $52.7m, the filing said.

The filing added that Policybazaar is in consultation with its book running lead managers to raise around $100m through a pre-IPO issue of shares. If the placement is completed, the fresh issue component of the IPO will be reduced.

The firm plans to use the proceeds to create brand awareness, fund strategic investments, and acquisitions and expand its global footprint.

The company is said to be targeting a valuation in the range of $4bn to $5bn, up from $2.4bn achieved in the last funding round.

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As a precursor to the IPO, PB Fintech, the parent company of Policybazaar, was converted into a public limited company through a special resolution in June this year.

The IPO follows the news of Policybazaar receiving a regulatory nod to operate as an insurance broker in India.

The book running lead managers for the offering include Kotak Mahindra Capital, Morgan Stanley, Citigroup Global Markets India, ICICI Securities, HDFC Bank, IIFL Securities and Jefferies India.

Established in 2008, PolicyBazaar currently hosts over 100 million visitors a year and sells 400,000 insurance policies per month, says its website.

Last month, Star Health and Allied Insurance for IPO, which is backed by billionaire investor Rakesh Jhunjhunwala, Westbridge Capital, and Madison Capital.