Policybazaar IPO: What does GMP indicate when it is released for subscription next week

This issue, which closes on November 3, includes a new issue of ₹3,750 crore equity shares and offer for sale of approx. ₹1,960 crore by existing shareholders.

As per market observers, Policybazaar shares are available at a good premium (GMP) ₹175 in the gray market today. The company is planning to be listed on the major stock exchanges NSE and BSE on November 15.

“PB Fintech is all set to tap the equity markets when the traction for unicorns and startups is at its peak. In recent times, with the increase in financial literacy and ancillary laws for auto insurance, companies like PB Fintech will remain in focus as they are well established in this segment. However, going forward we can see that competition in the space can intensify,” said Abhay Doshi, Founder, UnlistedArena.com.

The proceeds from the new issue will be used to increase visibility and awareness of the company’s brands, to explore new opportunities to expand growth initiatives to grow the consumer base, including offline presence.

“The company has curtailed its losses and profitability doesn’t seem very far away. However, in the upper band of ₹980, this issue seems overpriced. In the short-term sentiment, there may be a gain of 15-20% initially, but for the longer term, I would prefer to track its performance further,” Doshi said.

PB Fintech is the leading online platform for insurance and lending products and provides access to insurance, credit and other financial products.

Kotak Mahindra Capital, Morgan Stanley, Citigroup Global Markets India, ICICI Securities, HDFC Bank Ltd, IIFL Securities and Jefferies India are the book running lead managers to the issue.