Policybazaar IPO Opens Today: Check GMP, Subscription Status, Price And More Details

PB Fintech, the operators of Policybazaar and Paisabazaar, will have its initial public offering (IPO) open for subscription today. It will be a three-day share sale with a fixed price band of ₹940-980 and the issue will end on November 3. The company said that it was collecting Rs 2,569 crore from its anchor investors as well. As per the BSE data, earlier during the day, Policybazaar’s IPO had been subscribed 0.09 times as the Qualified Institutional Buyers (QIBs) was subscribed 0.01 times.

The IPO is worth Rs 5,710-crore, which included a fresh issue of Rs 3,750 crores and an offer for sale of Rs 1,960 crore by the existing shareholders. PB Fintech is one of the most sought-after online platforms for insurance as they offer other financial services as well. According to several market experts, the shares of Policybazaar can be bought at a premium (GMP) of 150 in the grey market. The company has also revealed plans to list itself on the NSE and BSE in mid-November.

What do the market experts say about the IPO?

Choice Broking said in its public statement regarding its opinion on the Policybazaar IPO, “Macros of the insurance sector are positive and so are the fundamentals of PBFL. The company with its dominant position in the digital insurance and credit market is expected to benefit from the abundant business opportunities in both markets. At a higher price band of Rs. 980, PBFL is demanding an EV/TTM Sales multiple of 40.5x, which seems to be very stretched. Considering the above observations, we assign a “Subscribe for Long Term" rating for the issue.” ShareIndia, another prominent market analyser said, "Policybazaar has so far been able to attract new customers through unique 1.26 million visits during FY21 on its platform and maintained the lead in the 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 funds generated from the share market will be utilised to enhance brand visibility and to improve awareness regarding its services. The company is also looking to expand its offline presence and will also look for further investment opportunities. The major investors involved in the shares of Policybazaar are 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.