Policybazaar makes stock market debut; shares list at 17.35% premium to IPO price

PB Fintech Ltd, which is the parent company of Policybazaar and Paisabazaar was listed on the stock exchange on Monday and was trading 26.8% higher at Rs 1,242.1 at 12:25 pm. The stock was listed at a premium of 17.35% to its IPO price of Rs 980 and was up by Rs 170 per share. At Rs 1,150 per share, the listing has garnered an excellent response from the investors. The total value of the IPO of Policybazaar is expected to be Rs 5,600 crore and was subscribed 16.6 times between November 1-3.

The peak was achieved at 12:30 pm when the stock was trading 26.54% higher at Rs 1,240.05. Several analysts have advised that acquiring the stocks now would most certainly not provide much return however existing investors have been advised to hold the stock with a stop loss of Rs 1,050. Motilal Oswal, the market analysing company, labelled the stocks of PB Fintech as ‘Subscribe for Listing Gains.’

More about the issue

The fintech company’s Policybazaar is India's biggest digital insurance portal and has a market share of 93.4%. The numbers are from the fiscal year 2020-2021 and are dependent on the number of insurances sold in the same year. As the scope of digital insurance in India remains high and due to the work already done by PB Fintech to create awareness and invest in other projects, the stocks of the company were given a good response by the investors and were advised to invest by several analysts. The company had earlier announced that it will direct the funds generated from the IPO proceeds to enhance brand visibility and awareness, find new investment opportunities, try and expand offline presence, and strategically expand its presence outside India.

Apart from Policybazaar, Sigachi Industries, which produces refined wood pulp and SJS Enterprises, which produces decorative aesthetics products also debuted in the market today. Sigachi Industries' issue was up by 267%, while that of SJS Enterprises' was down by 1%. Other popular Indian companies like Zomato and Nykaa also became public recently and were highly popular among investors. Paytm will be listed on the market on November 18 after its IPO was subscribed just 1.89 times and has a valuation of $2.5 billion. It is the country's largest IPO. 

Image: Shutterstock