Policybazaar IPO opens today: Here’s everything you need to know

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 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 come around Rs 26.21 crore.

PB Fintech is the leading online platform for insurance and lending products. It leverages the power of technology, data and innovation.

The company provides convenient access to insurance, credit and other financial products and aim to create awareness amongst Indian households about the financial impact of death, disease and damage.

Investors who wish to subscribe to Policybazaar IPO can bid in a lot of 15 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,700 to get a single lot of PB Fintech. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).

The applicants also must note that the cut-off time for UPI mandate confirmation is Monday, November 8, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.

Citigroup Global Markets India, Kotak Mahindra Capital Company, Morgan Stanley India Company, ICICI Securities, HDFC Bank, IIFL Securities and Jefferies India are the book running lead managers to the offer while Link Intime India is the registrar of the issue.

The proceeds of the fresh issue will be used towards enhancing the visibility and awareness of its 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.

Before heading into the IPO, PB Fintech raised over Rs 2,569 crore (Rs 25,69,37,17,420) from 155 anchor investors in lieu of 26,218,079 equity shares at Rs 980 each, data from the stock exchanges showed.

The anchor investors include the likes of 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, Axis MF and UTI MF among others.

Commenting on the IPO, Ravi Singh, VP and Head of Research at Share India Securities said: “Policybazaar has so far able to attract new customers through unique 1.26 million visits during FY21 on its platform and maintained the leadership in digital marketplace. However, any public health threat like the Covid-19 pandemic, could adversely affect the business, financial condition, and results of operations. If we consider the overall business model of Policybazaar and its valuations over the past years then a NEUTRAL rating on this issue would be most suitable.”

The share allotment is likely to take place on Wednesday, November 10, 2021, and the shares are expected to be listed on Monday, November 15, 2021, according to the timeline given in the red herring prospectus (RHP).