PB Fintech Limited (Policy Bazaar) IPO Details

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Policy Bazaar IPO

Policy Bazaar IPO: Key Details

  • Grey Market Premium (GMP) today: 100 – 110

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

PB Fintech Limited, incorporated in 2008, is India’s largest online platform for insurance and lending products leveraging the power of technology, data, and innovation (Source: Frost & Sullivan). They provide convenient access to insurance, credit, and other financial products and aim to create awareness amongst Indian households about the financial impact of death, disease, and damage.

They seek to enable online research-based purchases of insurance and lending products and increase
transparency, which enables consumers to make informed choices. They also facilitate Insurer and
Lending Partners in the financial services industry to innovate and design customized products for
consumers leverage the extensive data insights and data analytics capabilities.

Competitive Strengths

  • Consumer-friendly brands offering wide choice, transparency and convenience
  • Proprietary technology, data and intelligence stack
  • Collaborative partner for Insurer and Lending Partners
  • Scale gives self-reinforcing flywheels and strong network effects
  • High renewal rates providing clear visibility into future business and delivering superior
    economics
  • Benefits from economies of segmentation
  • Low operating costs and capital requirements
  • Founders with clarity of purpose backed by experienced management

Company Strategy

  • Broaden and deepen consumer reach in India
  • Expand playbook to replicate platform for SME and corporate clients
  • Continue to invest in the brands
  • Neo-lending strategy to cover innovation and segment gaps
  • Continue to invest in digital and technology infrastructure
  • Pursue strategic investments and acquisitions to enhance product and service capabilities
  • Pursue international expansions

Proceeds from Policy Bazaar IPO will be used to:

  • Enhancing visibility and awareness of brands, including but not limited to “Policybazaar” and “Paisabazaar”;
  • New opportunities to expand Consumer base including offline presence;
  • Strategic investments and acquisitions;
  • Expanding presence outside India; and
  • General corporate purposes

Policy Bazaar IPO: Financials

201920202021 Mar2021 Jun
Revenue from Ops₹492.24₹771.29₹886.66₹237.73
Profit before Excep*₹(337.43)₹(294.84)₹(141.91)₹(110.84)
Profit after Tax(346.81)₹(304.03)₹(150.24)₹(110.84)
EPS (Basic)(4.11)(8.68)(12.01)(2.91)
*Tax and Exceptional Items | ₹ in Crores, except EPS

As of March 2020EPS (Avg*)P/E (Floor)P/E (Cap)
Based on basic EPS(6.95)
* Weighted Average for last 3 years

Policy Bazaar IPO: Comparison with listed industry peers

According to the RHP, the company does not have any comparable listed industry peers in India

Policy Bazaar IPO Dashboard

Issue Details

TypeValue
Issue Size5,625 Cr
Fresh Issue3,750 Cr
Offer for Sale1,875 Cr
Face Value₹2/- per Equity Share
IPO Price₹940 – ₹980
Lot Size13 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open1/11/2021
Bid Close3/11/2021
Allotment Finalization10/11/2021
Initiation of Refunds11/11/2021
Credit of Shares12/11/2021
Listing Date15/11/2021

Lot Size and Price

LotsSharesAmount
113₹14,700
13169₹1,91,100

Promoter Group Holding

HoldingPercentage
Pre-Issue0.00%
Post-Issue0.00%

Policy Bazaar IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB75%[.] shares
NII15%[.] shares
RII (Retail)10%[.] shares
Employee[.] shares
Total100%[.] shares

Policy Bazaar IPO: Risks

  • Company has a history of losses and anticipate increased expenses in the future.
  • They operate in dynamic and competitive online fintech industries, which makes it difficult to predict future prospects.
  • One of theobjects of the Offer is to undertake investments in enhancing visibility and awareness of brands, “Policybazaar” and “Paisabazaar”. The manner in which such expenditure or investment will be made, or the outcome of such expenditure or investment, is not ascertainable at this stage.
  • They may not be able to ensure the accuracy and completeness of product information and the effectiveness of recommendation of insurance products on the platform

For complete internal and external risk factors, you can refer to the RHP of the company.

Policy Bazaar IPO: Registrar and Lead Managers

Registrar of the Issue

Link Intime

C-101, 247 Park
L B S Marg, Vikhroli (West)
Mumbai 400 083
Maharashtra, India

Phone: +91 22 4918 6200
Email: [email protected]

Lead Managers of the Issue

Kotak Mahindra Capital Company Limited
Morgan Stanley India Company Private Limited
IIFL Securities Limited
HDFC Bank Limited
Citigroup Global Markets India Private Limited
ICICI Securities Limited
Jeffries India Private Limited

Phone: +91 22 4366 6666
Email: [email protected]

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