PB Fintech Limited IPO Review 2021: The PolicyBazaar IPO will be the final major IPO to hit the markets this month. The IPO will be open from November 1st to November 3rd. The company aims to raise ₹5,625.00 Cr through the public offering.
In this article, we look into important information on the PolicyBazaar IPO. We also will find out the possible prospects of the company. Keep reading to find out!
Table of Contents
About the Company
PB Fintech is India’s top online platform for insurance and credit products. The company launched PolicyBazaar in 2008 with the aim of creating a platform that simplified investing in insurance online.
This platform allowed users to buy and insurers to sell insurance products online The company did this by providing detailed clear information along with a choice to compare and select from various policies.
This helps policy buyers make informed choices.
As of 2020, Policy Bazaar held a 93.4% market share based on the number of policies according to Frost and Sullivan. In addition to this 65.3% of all digital insurance, sales were transacted through Policy Bazaar in 2020.
PB Fintech launched its other platform called Paisabazaar in 2014. Paisabazaar helps its users select a personal loan, business loan, home loan and credit cards by providing relevant information and comparison.
In this niche, PaisaBazaar held a 53.7% market share as of 2021 according to Frost and Sullivan. PaisaBazaar has partnered with over 54 large banks, NBFCs and other fintechs. During the last 3 years the company Rs.5,101 Cr, Rs.6,549Cr, and Rs.2,916Cr, respectively.
The company’s main source of revenue comes from the commission received from insurance and lending partners on Policy Bazaar and PaisaBazaar.
Another source of income is from their telemarketing and other sales, post-sales services, credit advisory and marketing services offered to partners on both sites.
Although the firm has achieved a 34% CAGR over the last 3 years the company still has negative EBITDA. The IPO puts
Grey Market Information
The shares of PB Fintech traded at a 17.85% premium in the grey market before the IPO. The shares are traded at a price of Rs.1,155. This gives it a premium of Rs 175 over the issue price band of Rs 940-980 per share.
Key IPO Information
The company was launched by its parent company PB Fintech. The company is backed by investors like SoftBank, Info Edge, Tencent, Claymore Investment, Tiger Global, Falcon Edge, Alpha Wave and others.
The IPO includes an offer for sale of Rs 1,960 crore. These include sales from SVF Python II (Cayman) (Rs 1,875 crore), Yashish Dahiya (Rs 30 crore), Alok Bansal (Rs 12.75 crore), Shikha Dahiya (Rs 12.25 crore) and Rajendra Singh Kuhar (Rs 3.5 crore).
| Particulars | Details |
|---|---|
| IPO Size | ₹5,625.00 Cr |
| Fresh Issue | ₹3,750.00 Cr |
| Offer For Sale(OFS) | ₹1,875.00 Cr |
| Opening Date | Nov 1, 2021 |
| Closing Date | Nov 3, 2021 |
| Face Value | ₹2 per equity share |
| Price Band | ₹940 to ₹980 |
| Lot Size | 15 Shares |
| Minimum Lot Size | 1 |
| Maximum Lot Size | 13 |
| Listing Date | Nov 15, 2021 |
They have appointedKotak Mahindra Capital Company, Morgan Stanley India Company, Citigroup Global Markets India, ICICI Securities, HDFC Bank Ltd, IIFL Securities and Jefferies India as the lead managers to the issue. Link Intime India Private Ltd has been appointed as the registrar to the issue.
Purpose of the IPO
The funds from the IPO will be used for
- For enhancing visibility and awareness of company’s brands- Rs.1,500 Cr
- New opportunities to expand company’s consumer base including offline presence – Rs.375 Crores
- Funding strategic investments and acquisitions – Rs.600 Crores
- Expanding presence outside India – Rs.375 Crores
- General corporate purposes.
In Closing
In this post, we covered the PolicyBazaar IPO Review. The Initial Public Offering opens on November 1st and closes on November 3rd 2021.
For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of the company.
Do let us know what you think of the PolicyBazaar IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
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