SoftBank will sell around 20 per cent of its total stake in Policybazaar’s initial public offering, the fintech company said today. The Japanese venture fund currently has a 13 per cent stake in the IPO-bound company.

The IPO consists of a new issue of Rs 3,750 crore, along with an offer for sale (OFS) of Rs 1959.72 crore by existing promoters and shareholders. Of the total request for sale, Softbank’s sale is Rs 1,875 crore, while individual shareholders will share Rs 85 crore. Policybazaar had initially filed a draft red herring prospectus in July, saying that the offer for sale in the IPO would be Rs 2,267.5 crore–meaning, the OFS amount now is 85 per cent of the initially planned amount.

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The company said it would use around Rs 1,500 crore out of the net proceeds to fund marketing initiatives over the next three years.