Policybazaar IPO: The company has fixed the price band of Rs 940 to Rs 980 per share
The initial public offer (IPO) Policybazaar - the country's leading online insurance aggregator opens for subscription on Monday, November 1. Operated by PB Fintech, the Policybazaar is an online platform for consumers and insurer partners to buy and sell insurance products. It caters to customers who require information, choice, and transparency in terms of insurance policies.
Policybazaar IPO: 10 Things To Know
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IPO Dates: The bidding for the insurance marketplace's IPO will start on November 1 and close on November 3, 2021. The basis of the allotment date will be done on November 10. The issue is likely to be listed on stock exchanges BSE and NSE in November 2021.
IPO Price Band: The company has fixed a price band of Rs 940 to Rs 980 per equity share for its public offer.
IPO Details: The offer comprises a fresh issue of Rs 3,750 crore, along with an offer for sale (OFS) of Rs 1959.72 crore by existing promoters and shareholders. The issue size is 6,07,30,265 shares, with a face value of Rs 2 each.
IPO Lead Managers: Citigroup Global Markets India, HDFC Bank, ICICI Securities Limited, IIFL Securities, Jefferies India, Kotak Mahindra Capital Company Limited, Morgan Stanley India Company are the book running lead managers of the IPO
Fund Raising: Policybazaar aims to raise around Rs 5,710 crore through the public issue, according to certain media reports.
Issue Objectives: Policybazaar plans to utilise the fresh issue proceeds, after deducting the offer related expenses, for enhancing its visibility and awareness of brands (including but not limited to Policybazaar and Paisabazaar) (Rs 1,500 crore)
-It plans to utilise Rs 375 crore in new opportunities to expand consumer base including offline presence
- Rs 600 crore will be utilised in strategic investments and acquisitions
-Rs 375 crore will be used in expanding the company's presence outside India
-General corporate purposes.
Company Profile: Policybazaar offers its users with pre-purchase research, purchase, including application, inspection, medical check-up, and payment; and post-purchase policy management, including claims facilitation, renewals, cancellations, and refunds. As of March 2021, 51 insurer partners offered more than 340 term, health, motor, home, and travel insurance products on the policy bazaar platform.
Competitive Strengths: Providing choice and transparency to customers to research and select insurance and personal credit products.
-Technology solutions focused on automation and self-service-driven consumer experiences requiring minimal human intervention.
Financials: PB Fintech recorded a consolidated loss of Rs 150.24 crore in fiscal 2020-21, compared to a loss of Rs 304 crore in FY20 and loss of Rs 346.81 crore in FY19. In the same periods, revenue from operations increased to Rs 886.66 crore, from Rs 771.29 crore and Rs 492.24 crore respectively.
What analysts say: "At the higher end of the price band, the issue is aggressively priced at 45 times price/sales (based on FY22 annualised sales). However, given a fancy for novel tech-based startups, the issue could enjoy premium valuation.
Given the euphoria for this issue, the shares had been trading in the range of Rs 2,100- Rs 2,300 in the unlisted market last week. Investors with a higher risk-appetite looking to take exposure to a niche tech-based platform should consider investing in the issue," SEBI-registered investment advisor INDmoney said in a report.