PB Fintech IPO: What GMP Indicates Ahead of PolicyBazaar Share Listing Date

PB Fintech GMP

As per market observers, PolicyBazaar IPO Gray Market Premium (GMP) is today 123, more than double yesterday’s PB Fintech IPO GMP 55. Market observers further said that the share price of PB Fintech has skyrocketed in the gray market after remaining sluggish for almost a week following the change in market sentiment on Friday. He said that since last one week the market sentiment has been sideways with weak bias, which also affected the gray market. As the market sentiment changed, he said attractive listing of public issue can be expected.

What does this GMP mean?

Observers said that market mood plays an important role in the success of the public issue. With the change in market sentiment on Friday, if the sentiment continues on Monday, PB Fintech shares may get a strong listing as the company’s fundamentals are very promising. Since there is only an estimated listing profit from the GMP IPO, PB Fintech’s 123 GMP shows that the gray market is looking forward to PolicyBazaar share listing 1103 ( 980+ 123), which is approximately 12.50 percent higher than PB Fintech’s price band from 940 980 per equity share.

Speaking on the fundamentals of PB Fintech; Aastha Jain, Research Analyst, Hem Securities said, “The company is bringing this issue at the price band. 940 to 980 per share on FY23E and FY24E at 23x and p/s multiplier of 17x. The company has created consumer-friendly brands offering wide choice, transparency and convenience. Being associate partner to the insurer and lending partners the company has high renewal rates which provides clear visibility into the future business and provides better economics. The company also benefits from economies of scale with lower operating costs and capital requirements.”

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.