Policybazaar IPO Should you subscribe or avoid this IPO

 PB Fintech Company brief introduction:

Finally, IPO of Policy bazaar announced the date when PB Fintech IPO is coming into the Indian stock market.  It was most awaited IPO by Indian stock market investors & Traders. Everyone knows the online platform policybazaar.com which sells the online insurance policies. The famous brand of the PB Fintech company has Policybazaar and Paisabazaar platforms which are offerings numbers of online insurance policies as well as lending markets.

PB Fintech ltd provide easy gateway to purchase insurance, credit and other financial products. Company has also motive to spread awareness in Indian people  about the financial impact of death, disease and damage. Company customers has centric approach & Company online platform  enable research based purchases of insurance and lending products with  enhancement of  transparency,. This is very important step which attract Consumers to make informed choices.

Under the Companies Act, 1956, Company was established as “Etechaces Marketing and Consulting Pvt. Ltd.” on June 4th 2008. After few years The Company had decided to change name of the company to “PB Fintech Pvt. Ltd.” September 18th 2020. Later on, Company had converted into a public limited company on June 30^th 2021.

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When policybazaar IPO will be opened?

Policybazaar  IPO will be opened on 1^st November 2021 in Indian stock market. PB Fintech IPO issue size will be around is 6, 07, 30,265 shares with the face value of Rs2 each. Policybazaar IPO will be closed on 3^rd November 2021.

What is Policybazaar IPO price band?

Policybazaar IPO pricae band range is Rs 940-980 per share with face value of 2rs per share.

What is the lot size of Policybazaar IPO?

Policybazaar IPO is coming up with the lot size of 15 shares per lot.

What is allotment of shares date of Policybazzar IPO?

Company will be finalized allotment of shares on 10^th November 2021. The stock will trade on both exchanges NSE & BSE stock exchanges.  

When Policybazaar shares will be credited into the demat accounts?

The lucky bidders of policybazaar IPO will get credit of shares into their demat accounts on 12^th November.

When Refund will be initiated of Policy bazaar IPO?

The unlucky bidders of Policybazaar IPO will get refund into their bank accounts on 11^th November 2021.

 What is Policybazaar IPO listing Date?

Policybazaar IPO will will be listed on 15^th November- 2021 on the BSE India stock exchange as well on NSE India.

What is grey market premium of Policybazaar IPO?

Grey markets offering premium of 138rs per share to Policy bazaar IPO but grey market premium is always not confirm & grey market premium may increase or decrease before listing of the IPO.

PB Fintech, Policy bazaar IPO fund raising details:

Company will try to raise around Rs 5709.72 crore of amount from the Indian market. The fresh issue of this IPO is more than 3720 crore & Offer for sale will be more than rs1950 crore. OFS will be done by the existing promoters and shareholders. The important thing is that offer for sale will be driven by SVF Python II (Cayman) investor. The total shares of selling would be value of Rs 1,875 crore. Let us know you that SVF Python II currently   holds 9.45 percent stake in the company.

Who are the Booking running lead managers of Policy bazaar IPO?

Booking running lead managers of Policy bazaar IPO will be HDFC Bank Ltd, Citigroup Global Markets India, Jefferies India Kotak Mahindra Capital, Morgan Stanley, ICICI Securities, , IIFL Securities.

Policybazaar IPO, Should you subscribe or avoid?

If we will check the Total revenues of the company in the march 2020 then it was 8,555.63 million & in the march 2021 total revenues are reported by the company 9,574.13 which decreased in June 2021 reached to 2,581.74 million. Let have a look on company profit/loss after tax which was reports by the company in March 2021, company had reported loss of (1,502) & In June 2021 Qtr Company has reports (1,108). Overall company is in loss. As per the company management, IPO funds will be used to create more awareness in the Indian market about the brand name of Policybazaar and Paisabazaar & for this brand Awareness Company is planning to invest more than 1490 million which is not too bad. Also company will use raised IPO funds into offline presence market & it is expected to invest more than Rs.3, 740 Million. As per march 2021 data, Company had added or registered more than 4.8 crore consumers on policybazaar online platform out of them nearly 2 crore policies had been purchased from the insurer partners. Company had also reported more than 12.60 crore of visits on Policybazaar.com in FY21. Company has also expansion plans outside of India & More than rs3750 million funds will be used for it.

Online policy buying is not much oldest business concept in India. Also People are not much aware about Insurance policies. There is no question the current time is of digital market and coming era will also of of it but in India, Purchasing of insurance policies are not mandatory as of now but after covid pandemic people are now more aware of it. But still there is much competition in this business segment. Policy bazaar & Paisabazaar is purely based on the online platform But Company has also nearly 15 outlets. There are lot of challenges to the company in this market. If company will sell online insurance policies then it will earn profit. As per data policy bazaar has more than 65% market share of online insurance policies selling.  If Investors have long term investment point of view only then apply in Policybazaar IPO. As big financial institutes like ICICI bank, HDFC bank ltd associated with this IPO therefore it will be able to fully subscribed & we may see reasonable gains in this IPO listing. But mind it, our website recommendation on this IPO will be on the long term point of view only.

Recommendation: Subscribe only for long term Point of view.