Policybazaar makes positive debut on NSE, BSE
PB Fintech, the operator of insurance platform Policybazaar and financial services portal Paisabazaar, made a positive debut on the NSE and BSE today. Policybazaar shares started trading at Rs 1,150 apiece, a premium of 17.4 percent over the issue price of Rs 980 per share.
It then gained 22.95 per cent to Rs 1,205 on the BSE. PB Fintech commanded a market valuation of Rs 52,800.49 crore on the BSE in early trade.
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.
Policybazaar IPO reported a robust response from investors. The initial public offer of PB Fintech Limited was subscribed 16.59 times. The Price range for the Rs 5,710-crore offer was at Rs 940-980 per share.
Manoj Dalmia, Founder and Director, Proficient Equities, said that the IPO was listed at a good premium, but the issue seems overvalued. "Investors can book profits. Expect a good demand if earnings are positive in the coming weeks," he said.
Policybazaar IPO comprised 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 OFS, SVF Python II (Cayman) offloaded shares worth Rs 1,875 crore, Yashish Dahiya sold shares worth Rs 30 crore, Alok Bansal divested shares worth Rs 12.75 crore, Shikha Dahiya sold shares to the tune of Rs 12.25 crore and Rajendra Singh Kuhar sold shares worth Rs 3.5 crore. In addition, Founder United Trust also sold around 2,67,500 shares and in upper band price it comes to around Rs 26.21 crore.
Of the entire issue, 75 per cent was reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.
The company said that it will use the proceeds of the fresh issue 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.
