PolicyBazaar IPO Opens Today: PB Fintech, operator of online insurance platform PolicyBazaar and banking products comparison portal Paisabazaar, is all set to launch its Initial Public Offering (IPO) on Monday, November 1. Investors will get a chance to bid for it. Public issue till November 3, 2021. The leading insurance and lending platform operator has fixed the price band for the IPO at Rs 940-980 per equity share. Let’s have a look at the details of Policybazaar IPO
1) The company is planning to raise Rs 5,700 crore through its IPO which includes a fresh issue of Rs 3,750 crore and an offer for sale of Rs 1,960 crore by shareholders who have sold their stake.
As part of the Offer for Sale (OFS), SVF Python II (Cayman) will sell shares worth Rs 1,875 crore, Yashish Dahiya will sell shares worth Rs 30 crore, Alok Bansal will sell shares worth Rs 12.75 crore, Shikha Dahiya will sell shares. 12.25 crore and Rajendra Singh Kuhar will sell shares worth Rs 3.5 crore.
2) Policybazaar operator has fixed the issue price at Rs 940-980 per equity share with a face value of Rs 2 per equity share.
3) Investors can bid for a minimum of 15 equity shares and in multiples of 15 equity shares.
4) The fintech company has set aside 75 per cent of the total offer for qualified institutional buyers while 15 per cent is earmarked for non-institutional buyers. The remaining 10 percent will be reserved for retail investors.
5) PB Fintech will use the proceeds from this issue to increase visibility and awareness of the company’s brands – Policybazaar and Paisabazaar. About Rs 1,500 crore will be spent on brand visibility. At least Rs 375 crore will be used for new opportunities to expand the consumer base including offline presence. The company is looking to utilize Rs 600 crore for strategic investments and acquisitions, while a lump sum amount of Rs 375 crore will go towards expanding presence outside India, apart from general corporate purposes. The Offer for Sale money will go to sell to shareholders including SVF Python II.
6) PB Fintech has created India’s leading online portal for insurance policybazaar and lending products Paisabazaar. The company provides convenient access to insurance, loans and other financial products and aims to create awareness about the financial impact of death, illness and loss in India. PolicyBazaar was India’s largest digital insurance marketplace among all online insurance distributors, with a market share of 93.4 percent based on the number of policies sold in FY20. It made up 65.3 percent of all digital insurance sales in India based on the number of policies sold.
Launched in 2014, Paisabazaar aims to “provide ease, convenience and transparency for consumers to choose from a variety of personal loans and credit cards.” According to Frost & Sullivan, Paisabazaar was India’s largest digital consumer credit market with 51.4 percent of the market share. Shares, on the basis of disbursement in FY 2020.
7) PB Fintech posted a consolidated loss of Rs 150.24 crore for the financial year FY 2011. The loss was much lower than the loss of Rs 304.03 crore seen in FY20. Revenue from operations grew 15 per cent year-on-year to Rs 886.66 crore in FY11.
The loss during the June quarter 2021 stood at Rs 110.84 crore. Revenue grew 35.8 per cent year-on-year to Rs 237.73 crore from Rs 175.02 crore in the same period.
8) For investors, Amarjit Maurya – AVP – Mid Cap, Angel One Ltd said, “In terms of valuation, EVs/sales works out to 47.6x (at the upper end of the issue price band) after FY21, Joe’s historical financial performance is high (continuing losses on the bottom-line front). Considering the company’s overall business model and high valuations, we recommend a neutral rating on this issue.”
9) According to market experts, the shares of Policybazaar were trading at Rs 150 in the gray market on Monday. Policybazaar’s gray market premium for November stood at Rs 1,130, 15 per cent higher than the issue price’s high end of Rs 980.
10) Goldman Sachs, Nomura, BlackRock Global Funds, Morgan Stanley, Canada Pension Plan Investment Board, Fidelity, Abu Dhabi Investment Authority, ICICI Prudential Mutual Fund (MF), SBI MF, Axis MF and UTI MF are among the anchor investors. Shares allotted.
read all breaking news, breaking news And coronavirus news Here. follow us on Facebook, Twitter And Wire.
.