Business

Policybazaar IPO to open on Monday: 10 things to know

October 30, 2021
Bharat Times

Policybazaar IPO: The company has fixed a price band of Rs 940 to Rs 980 per share

Initial Public Offering (IPO) PolicyBazaar – the country’s leading online insurance aggregator opens for subscription on Monday, November 1. Powered by PB Fintech, PolicyBazaar is an online platform for consumers and insurer partners to buy and sell insurance products. It caters to the customers who require information, choice and transparency in terms of insurance policies.

Policybazaar IPO: 10 things to know

  1. IPO Dates: Bidding for the insurance marketplace’s IPO will begin on November 1 and close on November 3, 2021. The date of allotment will be based on November 10. The issue is likely to be listed on the stock exchanges BSE and NSE in November 2021.

  2. IPO Price Band: The company has fixed a price band of Rs 940 to Rs 980 per equity share for its public offer.

  3. 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 the existing promoters and shareholders. The issue size is 6,07,30,265 shares, each with a face value of Rs 2.

  4. 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.

  5. Fund raising: According to some media reports, PolicyBazaar aims to raise around Rs 5,710 crore through a public issue.

  6. Objectives of the issue: Policybazaar plans to use the proceeds from the new issue (Rs 1500 crore) to increase its visibility and awareness of brands (not limited to Policybazaar and Paisabazaar), after deducting the expenses related to the offer.
    It plans to use Rs 375 crore in new opportunities to expand consumer base including offline presence
    – Rs 600 crore to be used for strategic investments and acquisitions
    -Rs 375 crore will be used to increase the company’s presence outside India
    General corporate purpose.

  7. Company Profile: PolicyBazaar provides its users with pre-purchase research, purchase, application, inspection, medical check-up and payment including; and post-purchase policy management, including claims facility, renewal, cancellation and refund. As of March 2021, 51 insurer partners offer over 340 term, health, motor, home and travel insurance products on the PolicyBazaar platform.

  8. Competitive Strength: Providing customers with choice and transparency to research and select insurance and personal credit products.
    -Technology solutions focused on automation and self-service driven consumer experiences that require minimal human intervention.

  9. Financial: PB Fintech reported a consolidated loss of Rs 150.24 crore in FY 2020-21 as against a loss of Rs 304 crore in FY 2020 and Rs 346.81 crore in FY19. In the same period, revenue from operations increased to Rs 886.66 crore from Rs 771.29 crore and Rs 492.24 crore, respectively.

  10. What Analysts Say: “At the high end of the price band, the issue is priced aggressively at 45 times price/sale (based on FY22 annual sales). However, given a fancy for novel tech-based startups, This issue can enjoy a premium valuation.
    In view of the enthusiasm about the issue, the shares were trading in the range of Rs 2,100 to Rs 2,300 in the unlisted market last week. Investors with high risk-appetite should consider investing in a niche technology-based platform, SEBI-registered investment advisor INDmoney said in a report.

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