Policybazaar parent company PB Fintech’s Rs-crore IPO opened for subscription on Monday, 1 November 2021. The public issue comprises a fresh issue of equity shares worth Rs crore, and offer-for- trade (OFS) of Rs crore by being shareholders of the company. In the primary request, Policybazaar shares were trading with a decoration of Rs 150 over the upper end of the issue price of Rs 980 all, according to the people who deal in unrecorded shares of the company. Request watchers say that PB Fintech has come up with its IPO when the traction for unicorns and startups is at its peak. PB Fintech is the leading online platform for insurance and lending products, using the power of technology, data, and invention.
Insurance penetration is in its incipient stage and with an increase in fiscal knowledge and probative laws for vehicle insurance, companies like PB Fintech will remain in focus as they’re well placed into the member, said an critic. “ Still, going further we may see competition enhancing in space. The company has narrowed its losses and profitability doesn’t feel much far. Still, at the upper band of Rs 980, the issue looks largely priced at 44x price to deals,” Abhay Doshi, Author,UnlistedArena.com, dealing inPre-IPO & Unlisted Shares, told Financial Express Online. Doshi also added that the magnet for incipiency IPOs may lead to a good subscription and this may radiate 15-20 listing earnings, but “ for long term we need to be vigilant on farther performance and take opinions consequently”, hesaid.Policybazaar is loss- timber and being a fintech, valuations also make no sense, Aditya Kondawar, COO, JST Investments, told Financial Express Online. At the upper band of Rs 980, the company is demanding a request cap of Rs crore post table. “ As per FY22A deals, the company is demanding 44x Price to deals, which is veritably precious,” he added. Since the insurance penetration is low in India, online is indeed veritably less and the compass for similar aggregators/ online brokers is huge. “ But numerous are entering the space and creating their own ecosystem of fiscal services. Brokerages are creating platform companies with all services outside, fintech too are entering and insurance generatorsi.e life and general insurance companies are taking the tech route themselves and they’re in no rush as agents are counting for a good share of the business,” Kondawar said. HDFC Ergo and ICICI Lombard have formerly logged out of PolicyBazaar. “ Keeping in mind all of this, we’ve an‘ avoid’ standing on the IPO. We’d like to cover this space for further time before taking up any action,” he advised.
Policybazaar IPO Loss- making company
There are no listed companies in India whose business is similar with that of the company’s business. Marwadi Shares and Finance, which has an avoid standing over the issue as valuations are demanding for a loss- making company, said considering the TTM as of June 2021, deals of Rs949.37 crore on apost-issue base, the company is going to list at a request cap/ deals of Rs46.40 with a request cap of Rs crore.
Judges say as the company isn’t profitable, valuing it on the base of P/ E isn’t possible. At the advanced end of the price band, the issue is aggressively priced at 45 times Price/ Deals ( grounded on FY22 annualised deals). “ Still, given a fancy for new tech- grounded startups, the issue could enjoy ultraexpensive valuation. Given the swoon for this issue, the shares had been trading in the range of Rs-Rs in the unrecorded request last week. Investors with a advanced threat- appetite looking to take exposure to a niche tech- grounded platform should consider investing in the issue,” INDmoney said in a report.
