Policybazaar IPO GMP, Policybazaar IPO Grey Market: The IPO of PB Fintech Ltd, which operates online insurance platform Policybazaar and credit comparison portal Paisabazaar, will open for subscription on Monday. The company has fixed a price band of Rs 940-980 a share for its Rs 5,710-crore IPO. The subscription will close on November 3.
Investors can bid for a minimum of 15 equity shares and in multiples of 15 equity shares thereafter. One lot (15 shares) of Policybazaar IPO will cost Rs 14,700,
Policybazaar IPO comprises a fresh issue of Rs 3,750 crore worth of equity shares and an offer for sale of about Rs 1,960 crore by existing shareholders. As part of the offer for sale (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 divest shares worth Rs 12.75 crore, Shikha Dahiya will sell shares to the tune of Rs 12.25 crore and Rajendra Singh Kuhar will offload shares worth Rs 3.5 crore. In addition, Founder United Trust will sell around 2,67,500 shares and on upper band price it comes around Rs 26.21 crore.
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.
Ahead of the IPO, the company garnered a little over Rs 2,569 crore from anchor investors. The company has decided to allocate 26,218,079 shares to 155 anchor investors at Rs 980 apiece, aggregating the transaction size to Rs 2,569.37 crore. Goldman Sachs, Nomura, BlackRock Global Funds, Morgan Stanley, Canada Pension Plan Investment Board, Fidelity, Abu Dhabhi Investment Authority, ICICI Prudential Mutual Fund (MF), SBI MF, Axis MF and UTI MF are among the anchor investors that have been allocated shares.
In the grey market, Policybazaar unlisted shares are commanding a moderate premium. Policybazaar shares are available at a premium (GMP) of 150 in the grey market which is around 15 per cent.
Policybazaar IPO allotment status will be announced on November 10 while shares will be credited to demat accounts on November 12. Policybazaar shares will be listed on NSE and BSE on November 15.
According to the company, proceeds of the fresh issue will be used towards enhancing visibility and awareness of the company's brands, to look for new opportunities to expand growth initiatives to increase the consumer base including offline presence. Also, the proceeds from the IPO will be used for funding strategic investments and acquisitions, expanding presence outside India and general corporate purpose.
PB Fintech is the leading online platform for insurance and lending products, leveraging the power of technology, data and innovation. It provides convenient access to insurance, credit and other financial products. PB Fintech was founded in 2008.
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