The initial public offer (IPO) of PB Fintech, the parent company of Policybazaar and Paisabazaar, which opened earlier this month, has received a warm response among investors during its three-day issue. The share allotment status of the IPO will be shared by the company on November 10, according to reports. As of the the final day of the offer, the IPO was subscribed 16.59 times. The IPO received bids for 57,23,84,100 shares against 3,45,12,186 shares on offer, according to data from National Stock Exchange or NSE. According to figures, Policybazaar IPO received success mainly because of Qualified Institutional Buyers or QIB. The portion reserved forQIB was subscribed 24.89 times. On the other hand, those meant for non-institutional investors were subscribed 86.51 times and those of Retail Individual Investors (RIIs) was booked 80.49 times.
Policybazaar IPO Listing, Refund Dates
Policybazaar, which is owned by PB Fintech, will have its basis of allotment announced on November 10. The basis of allotment of an IPO is when its registrar publishes a document after finalising the share allocation. This is based on rgulatory guidelines. The Policybazaar IPO is set to be listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The offer is likely to be listed on November 15.
The company will initiate refunds for bidders who do not get the shares of the IPO on November 11, Thursday. The credit of shares in the demat accounts of investors will be done on November 12. The Policybazaar IPO had opened on November 1 and closed on November 10. Its listing can be checked on the official BSE website as well as the registrar Link Intime India’s website.
Policybazaar IPO GMP
As on November 9, Tuesday, the Policibazaar IPO was trading at Rs 90 at the grey market. Therefore, the grey market premium (GMP) was not giving much return against the higher end of the market price, which had been fixed at Rs 980 a share. A high GMP often indicates strong listing for IPO shares on NSE and BSE later, and vice versa.
Policybazaar IPO Details
The price range for the Policybazaar IPO was fixed at Rs 940 at the lower end and Rs 980 at the lower end for each share. The company is planning to raise Rs 5,700 crore through its IPO that comprises a fresh issue of Rs 3,750 crore and an offer for sale of Rs 1,960 crore. The offer for sale consists of sale of Rs 1,875 crore worth of shares by investor SVF Python II (Cayman) and Rs 85 crore worth of shares cumulatively by Yashish Dahiya, Alok Bansal, founder United Trust, Shikha Dahiya and Rajendra Singh Kuhar. The price band for the offer has been fixed at Rs 940-980 per equity share.
Objectives of the Issue
PB Fintech, the parent company of Policybazaar, is going to use the proceeds of the IPO in several areas. The amount will be used for enhancing visibility and awareness of brands including, but not limited to, Policybazaar and Paisabazaar. The company also looks to find new opportunities to expand its consumer base including its offline presence. PB Fintech will also use the proceeds for strategic investments, acquisitions and expanding its reach outside India.
According to a note by ICICI direct Research, “PB Fintech is the leading online platform for insurance and lending products thereby providing access to insurance, credit and other financial products. It is India’s largest online platform for insurance (PolicyBazaar) and lending (Paisabazaar) products leveraging the power of technology, data and innovation.”
Policybazaar was India’s largest digital insurance marketplace among all online insurance distributors with 93.4 percent market share based on number of policies sold in FY20. The huge popularity of the e-insurance platform had prompted the operator to float an IPO, say analysts.