Should you invest in Policybazaar IPO ?

Policybazaar IPO Investment – Shoud we Invest ?

The initial public offering (IPO) of the online insurance platform Policybazar will open today as a subscription. The IPO closes on November 3. The company has set a price band of Rs 940-980 per share for the sale of shares worth Rs 5,710 crore.

The IPO includes a new issue of equity shares worth Rs 3,750 crore and an offer of Rs 2,267.50 crore for existing shareholders as per the draft red herring prospectus (DRHP) of the Policybazar IPO.

The shares will be issued on November 10 and the company will make its market debut on November 15.

The lot size of the IPO is 15 shares, for which one has to spend Rs 14,700. One can apply for a maximum of 13 lots or 195 shares at a cost of Rs 1,91,100.

PB Fintech Ltd, the parent company of Policybazar, had received SEBI approval for the IPO on October 19.

As part of the offer for sale (OFS), SVF Python II (Cayman) will sell shares worth Rs 1,875 crore, Yashish Dahiya will sell shares worth Rs 250 crore and some other selling shareholders will be offered shares.

The company had on Friday raised Rs 2,569 crore from anchor investors ahead of the IPO.

155 anchor investors, including HDFC Life, ICICI Prudential, Bajaj Alliance Life, SBI General Insurance and Max Life Insurance, participated in the bids for the allotted slot.

PB Fintech, which submitted the draft papers to SEBI in August, obtained the regulator’s permission to float the IPO on October 19.

Proceeds from the sale of shares will be used to increase the visibility and awareness of the company’s brands and to look for new opportunities to develop growth initiatives to increase the customer base, including offline presence.

In addition, proceeds from the IPO will be used to finance strategic investments and acquisitions, expand its presence outside India and for general corporate purposes.

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

Amarjeet Maurya – AVP – Midcaps, Angel One We recommend a neutral rating in this regard, taking into account the model and the high rating. ”

Choice broking has been positive in IPOs for a long time.

“The macros in the insurance sector are positive, as well as the basics of PBFL. The company, which dominates the digital insurance and credit markets, hopes to capitalize on the rich business opportunities in both markets. The multiplier demands, it seems, too long, and given the above observations, we give this issue a “Subscribe for Long Term” rating, “Choice Broking said.

Policybazaar parent PB Fintech IPO to open today. Details here

PB Fintech Ltd said on Friday it has garnered a little over 2,569 crore from anchor investors ahead of its IPO.

PB Fintech IPO will open at a price band of <span class='webrupee'>₹</span>940 and <span class='webrupee'>₹</span>980 per equity share.&nbsp;(Representative Image)

The three-day IPO of PB Fintech Ltd, which operates online insurance aggregator policybazar and credit comparison portal Pizbazar, will open on Monday, November 1 at ₹ 940 and ₹ 980 per equity share.

PB Fintech Ltd on Friday raised Rs 2,569 crore from anchor investors ahead of the IPO. According to a circular uploaded on the BSE website, the company has decided to allot 26,218,079 shares at Rs 980 each to 155 anchor investors, with the transaction size estimated at Rs 2,569.37 crore.

The Rs 5,710 crore PB Fintech IPO includes a new issue of Rs 3,750 crore equity shares and an offer of about Rs 1,960 crore for existing shareholders.

As part of the OFS, SVF Python II (Cayman) will sell shares worth Rs 1,875 crore, Yashish Dahiya will offload shares worth Rs 30 crore, Alok Bansal will sell shares worth Rs 12.75 crore and Shikha Dahiya will sell shares. 12.25 crore and Rajendra Singh Kuhar shares will be offloaded

In addition, Founder United Trust will sell about 2,67,500 shares, valued at about Rs 26.21 crore at high bandwidth.

Of the entire issue, 75 per cent will be reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.

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

Proceeds from the IPO will be used to finance strategic investments and acquisitions, expand its presence outside India and for public corporate purposes.

Includes Goldman Sachs, Nomura, BlackRock Global Funds, Morgan Stanley, Canadian Pension Plan Investment Board, Fidelity, Abu Dhabi Investment Authority, ICICI Prudential Mutual Fund (MF), SBI MF, AFC and FIF. Shares.

PB Fintech, the operator of Policybazaar, is planning to raise Rs 5,700 crore through its IPO

1) The company plans to raise Rs 5,700 crore through its IPO, which includes a new issue of Rs 3,750 crore and an offer of Rs 1,960 crore for the shareholders to sell their shares.

As part of the offer for sale (OFS), SVF Python II (Cayman) will sell shares worth Rs 1,875 crore, Yashish Dahiya will sell shares worth Rs 30 crore, Alok Bansal will sell shares worth Rs 12.75 crore and Shikha Dahiya will sell shares. 12.25 crore and Rajendra Singh Kuhar will offload shares worth Rs 3.5 crore.

2) The policyholder operator has fixed the issue price at Rs. 940-980 per equity share with a face value of Rs. 2 per equity share.

3) Investors can bid for at least 15 equity shares and multiples of 15 equity shares.

4) Fintech Company has reserved 75 per cent of the total offer for eligible institutional buyers while 15 per cent for non-institutional buyers. The remaining 10 per cent will be reserved for retail investors.

5) Proceeds from the PB Fintech issue will be used to enhance the visibility and awareness of the company’s brands such as Policybazar and Paybazar. About Rs 1,500 crore will go to brand visibility. At least `375 crore will be used for new opportunities to expand the customer base, including offline presence. The company wants to use Rs 600 crore for strategic investments and acquisitions, while Rs 375 crore will be used to expand its presence outside India in addition to public corporate needs. Shareholders, including SVF Python II, will receive a sale offer.

6) PB Fintech has launched India’s leading online portal for insurance policy bazaar and lending products such as pay bazaar. The company provides convenient access to insurance, credit and other financial products and aims to create awareness in India about the economic impact of death, illness and damage. policybazar was the largest digital insurance marketplace in India among all online insurance providers with a market share of 93.4% based on the number of policies sold in FY20. It accounts for 65.3 per cent of digital insurance sales in India in terms of number of policies sold.

Launched in 2014, PaisaBazaar aims to make it easier, more convenient and transparent for customers to choose from a wide variety of personal loans and credit cards. Allocation based on distribution for the financial year 2020.

7) PB Fintech has reported a consolidated loss of Rs 150.24 crore for the financial year 2021. The loss is very low compared to the loss of Rs 304.03 crore seen in the financial year 2020. Revenue from operations increased by 15 per cent to Rs 886.66 crore in the financial year 2021.

The loss for the June 2021 quarter was Rs 110.84 crore. Revenue for the same period increased by 35.8 per cent to Rs 237.73 crore from Rs 175.02 crore.

8) For investors, Amarjeet Maurya – AVP – Midcaps, Angel One Ltd. said, “In terms of valuation, FY2021 EV / sales after issue is 47.6 times higher (at the top end of the issue price band). Is high considering the historical economic performance of (causing continuous losses at a low level). Given the company’s overall business model and high rating, we recommend a neutral rating on this issue. ”

9) policybazar shares traded at Rs 150 in the gray market on Monday, market observers said. policybazar’s gray market premium was Rs 1,130 in November, up 15 per cent from the issue price of Rs 980.

10) Goldman Sachs, Nomura, Blackrock Global Funds, Morgan Stanley, Canada Pension Plan Investment Board, Fidelity, Abu Dhabi Investment Authority, ICICI Prudential Mutual Fund (MF), SBI MF and SBICF Shares allotted.

File image

According to KR Choksi, the company’s big plus components include its large, low and growing market, digital market leadership, strong ability to attract new customers to its platforms (unique number of visits to its policybazar platform on FY21, and its ability to retain customers with over 126.5 million visits). Strong relationship with partners.

Risk factors for the company are any public health threat, such as the COVID-19 pandemic, which may adversely affect business, financial position, and performance. Failure to adapt to the changing needs of the customer can lead to customer loss. It has a history of losses and the company expects costs to increase in the future. Non-compliance is a major threat to a company’s business.

Going forward, the company aims to expand and deepen its customer base in India, copy and expand its platform presence for SME and corporate clients, continue to invest in brands, digital and technology infrastructure, and pursue organic growth and international expansion.

According to the ChocCoi report, policybazar’s contribution to profits and margins has increased from Rs 42 crore to Rs 353 crore in the last two years and from 8.6 per cent to 39.8 per cent in the 2019 financial year respectively. Although the company is making losses at the EBIDTA level, it has been able to improve its unit metrics over the years, ”the report says.

“We love the company’s focus on growth and its willingness to do more experiments while focusing on the core business, international expansion and inorganic growth plans. Given policybazar’s multiple growth drivers and leadership position in the digital ecosystem, investors should ‘invest’ in IPOs for long-term gains, ”the report said.

Choice Broking believes that a company’s strength lies in the technology, data and intelligence stock it owns. It is a cooperative partner for insurer and lending partners, and its business scale gives it unique self-powered flywheels and powerful network effects; Its high renewal rates provide clear visibility to future business and provide excellent economics.

The brokerage thinks the company will suffer because of unfavorable government policies and regulations; Withdrawal of products from business partners; Low commissions from business partners; Difficulty in gaining and retaining customers; Decreased functionality; Business modernity and continued slowdown in credit growth.

At a higher price of Rs 980, the brokerage concludes that PB Fintech is demanding an EV / TTM sales multiple of 40.5x, which seems to be too long. “We give the issue a ‘Long Subscribe’ rating, taking into account the positives associated with the business.”

With insurance infiltration at only 4.2 per cent (Life Insurance 3.2 per cent and Non-Life 1 per cent), DVP-Equity Strategist, Angel One Limit, believes that the company’s platforms will address vulnerable online insurance and credit markets. “The company is committed to harnessing the technology-based business vertically to benefit from this growth. You can subscribe to this IPO for listing benefits, ”he said.

Rajeev Kapoor, Vice President, Trustline Securities, commented: “In terms of valuation, FY2021 EV / sales after the issue is 47.6 times higher (at the top end of the issue price band), which is higher than the company’s historic financial performance. (Causing continuous loss in the bottom row). “Given the company’s overall business model and high valuation, we recommend a neutral rating in this regard,” he said.

Policybazaar, SJS Enterprises IPOs open today: Should you subscribe? Check Anil Singhvi&#039;s views and strategy

Policybazaar IPO Key Details and Timeline:    

Issue size: Rs5710 crore
Price band: Rs940 to Rs980
Minimum quantity: 15
Application start date:  November 1, 2021
Application end date: November 3, 2021
Allotment beginning date: November 10, 2021
Refund initiation date: November 12, 2021
Share allotment date: November 12, 2021
Listing date: November 15, 2021

 

SJS Enterprises Ltd key details and timeline:  
Issue size: Rs800 crore
Price band: Rs531 to Rs542
Minimum quantity: 27
Application start date:  November 1, 2021
Application end date: November 3, 2021
Allotment beginning date: November 10, 2021
Refund initiation date: November 11, 2021
Share allotment date: November 12, 2021
Listing date: November 15, 2021
*Details as per Upstox

Speaking about the company’s positives, Sea Business Managing Editor said the company is a market leader in its segment and has the support of an excellent growth track record. It also has aggressive growth plans, Anil Singhvi said.

He said the loss-making business and the risk of a change in regulations could affect the insurance market firm.

In the IPO of SJS Enterprises, Anil Singhvi recommended to apply for a longer period. He said the company is doing well with money-rich companies with good track records, debt-free, strong cash flows and visible growth opportunities. The downside of this IPO is that the valuation is not that attractive, Singhvi said.

When is policybazar IPO coming ?

Policybazar IPO is coming on 1 Novemeber 2021

What is the lot size of Policybazar IPO

PolicyBazaar IPO lot size is 15 Shares and the minimum order quantity is 15 Shares.

How to apply for policybazar IPO ?

You can apply in PolicyBazaar IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don't offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Edelweiss, ICICI Bank, HDFC Bank and SBI Bank.

When Policybazaar IPO allotment ?

The finalization of Basis of Allotment for PolicyBazaar IPO will be done on Nov 10, 2021, and the allotted shares will be credited to your demat account by Nov 12, 2021. Check the PolicyBazaar IPO allotment status.

How to apply in policybazaar ipo using zerodha

Zerodha customers can apply online in PolicyBazaar IPO using UPI as a payment gateway. Zerodha customers can apply in PolicyBazaar IPO by login into Zerodha Console (back office) and submitting an IPO application form. Steps to apply in PolicyBazaar IPO through Zerodha Visit the Zerodha website and login to Console. Go to Portfolio and click the IPOs link. Go to the 'PolicyBazaar IPO' row and click the 'Bid' button. Enter your UPI ID, Quantity, and Price. ‘Submit’ IPO application form. Visit the UPI App (net banking or BHIM) to approve the mandate.

Leave a Comment