Policybazaar IPO Subscribed 1.59 Times On Second Day Of Issue

Policybazaar's initial public offer (IPO) was subscribed 1.59 times on the second day of its issue, according to subscription data on the stock exchanges. The IPO of the country's leading online insurance aggregator opened for subscription on Monday, November 1, and will close on Wednesday, November 3 - remaining open for investors for a period of three days.

On Tuesday, qualified institutional buyers or QIB showed greater interest as the portion reserved for them was subscribed 2.08 times - the highest among the three groups of investors. The portion set aside for retail individual investors (RII) was subscribed 2.04 times, while the portion reserved for the non-institutional individual investors was subscribed 0.23 times.

The company has fixed a price band of Rs 940 to Rs 980 per equity share for its public offer. The public 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. Policybazaar provides choice and transparency to customers for research and helps in selecting insurance and personal credit products. It technology solutions are focused on automation and self-service-driven consumer effort, requiring minimal human intervention.

''The issue is valued at 46.3x FY22 Mcap/Sales on a post issue and annualized basis, which seems expensive compared to global peers. However, the issue is likely to attract investors interest given its leadership position in both digital insurance/consumer credit marketplace and customer centric approach.

In the current environment, market is liking such niche emerging platform stories, which is well placed to tap the high growth digital/online penetration in insurance/consumer credit market. Hence we recommend Subscribe from Listing Gains perspective,'' said leading domestic brokerage firm Motilal Oswal in its IPO note.