New Delhi: The initial public offer (IPO) of PB Fintech, which operates online insurance aggregator Policybazaar, opened for subscription on Monday. The public offer will conclude on November 3 and the basis of allotment date will be done on November 10. The company has fixed a price band of Rs 940 to Rs 980 per equity share.
The initial offer comprises a fresh issue of Rs 3,750 crore, along with an offer for sale (OFS) of Rs 1959.72 crore by existing promoters and shareholders. The issue size is 6,07,30,265 shares, with a face value of Rs 2 each.
The company said it has garnered Rs 2,569 crore from anchor investors.
Citigroup Global Markets India, HDFC Bank, ICICI Securities Limited, IIFL Securities, Jefferies India, Kotak Mahindra Capital Company Limited, Morgan Stanley India Company are the book running lead managers of the IPO.
Policybazaar plans to utilise the fresh issue proceeds for enhancing its visibility and awareness of brands.
PB Fintech recorded a consolidated loss of Rs 150.24 crore in fiscal 2020-21 (FY21), compared to a loss of Rs 304 crore in FY20 and loss of Rs 346.81 crore in FY19.
"Policybazaar's journey is praiseworthy and truly inspirational. The Insurtech Industry has seen a prosperous phase due to India's emergent online consumer base, this moment is a great milestone for the entire insurtech industry and the startup community as a whole," Sanjib Jha, Chief Executive Officer, Coverfox.com.
Market regulator SEBI-registered investment advisor INDmoney said: "At the higher end of the price band, the issue is aggressively priced at 45 times price/sales (based on FY22 annualised sales). However, given a fancy for novel tech-based startups, the issue could enjoy premium valuation. Given the euphoria for this issue, the shares had been trading in the range of Rs 2,100-Rs 2,300 in the unlisted market last week. Investors with a higher risk-appetite looking to take exposure to a niche tech-based platform should consider investing in the issue."
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