PB Fintech Limited (Policybazaar) IPO - 7 Things to Know About
PB Fintech Ltd, the company behind the digital brand Policybazaar, opens its IPO on 01-November. Policybazaar offers an agnostic platform for potential customers to research, compare, shortlist and buy insurance policies online.
Apart from Policybazaar, PB Fintech also offers the highly popular Paisabazaar, which provides online loans and real time credit rating for potential borrowers.
Here are 7 things to know about PB Fintech IPO
1) Policybazaar was launched in 2008 to offer consumers greater choice and transparency in the choice of insurance policies. Policybazaar offers a wide palate of over 340 products including term policies, health policies, motor, home and travel insurance.
2) Policybazaar has a 93.4% market share in terms of number of digital policies sold as per a Frost & Sullivan Report. Even if you look at in terms of volumes of policies sold, over 65% of all digital policies sold in India are through the Policybazaar platform. Like most digital plays, PB Fintech is also loss making and it made a loss of Rs.150cr in FY21.
3) Policybazaar has some core strengths like an agnostic platform, ability to execute call to action, deep partnerships with originators, proprietary technology ensuring deep customer intelligence and insights as well as very high renewal rates in the business.
4) The PB Fintech IPO will be open for subscription from 01-November to 03-November. The price band has been fixed in the range of Rs.940-980. The total issue size will be Rs.6,017 crore comprising of a fresh issue of Rs.3,750 crore and OFS of Rs.2,267 crore.
5) The fresh issue component of Rs.3,750 crore will go towards a number of value accretive purposes. Rs.1,500 crore will be allocated to building brand awareness of the PB Fintech family.
It will allocate Rs.375 crore for customer expansion while it has allocated Rs.600 crore for strategic acquisitions and inorganic growth. It will also allocate Rs.375 crore for global expansion plans.
6) The basis of allotment will be finalized on 10-Nov while refunds will be initiated on 11-November. While the shares will be credited to respective demat accounts on 12-November, the shares will be listed on the NSE and BSE from 15-November.
7) PB Fintech has a Marquee list of lead managers including Citigroup, HDFC Bank, I-Sec, IIFL Securities, Jefferies, Kotak Mahindra Capital and Morgan Stanley. Link Intime will be the registrars to the issue.
The PB Fintech issue will be to enhance the visibility of both its digital brands viz. Policybazaar and Paisabazaar. Info Edge, which owns a significant stake in Zomato, also owns a major stake in PB Fintech.
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