PB Fintech IPO — The Holding Company of Policybazaar and Paisabazaar Debuting on the Stock Market

It’s official! PB Fintech IPO will open for subscription on 1 November 2021. Its opening date is the same as the closing date of the Nykaa IPO. Since the beginning of the year, there has been a frenzy among firms to go public. Many of the firms that were listed this year, such as Zomato and Paras Defence and Space Technologies, have done well, providing investors with substantial gains. And several firms that are waiting in the line to get listed, including Paytm and LIC, are likely to make FY 2022 a historic year for IPOs.

Now that the PB Fintech IPO is opening soon, you should know what this company does and the strengths and risks associated with it to analyse this investment opportunity. Read everything you need to know before deciding to apply for the PB Fintech IPO.

About, operations, and services of the company

PB Fintech is India’s leading online marketplace for insurance and lending products according to Frost and Sullivan. This firm intends to raise awareness in India about the financial effects of death, sickness, and destruction.

Policybazaar, an online insurance distributor, and Paisabazaar, a loan comparison service, are both owned by PB Fintech. It was first incorporated as ‘ETECHACES Marketing and Consulting Private Limited’, a private limited company on 4 June 2008. Subsequently, the name of this company was changed to ‘PB Fintech Private Limited’, on 18 September 2020. And finally, its name was changed to ‘PB Fintech Limited’ on 30 June 2021.

It takes a consumer-centric approach to enable online research-based purchases of insurance and financing products, as well as boost transparency, allowing consumers to make educated decisions. This approach also helps financial services industry insurers and lending partners create and design customised products for consumers by utilising broad data insights and data analytics skills.

It has an asset-light capital strategy and does not underwrite insurance or hold credit risk on its books. Policybazaar is an IRDAI-registered and regulated direct (life and general) insurance broker.

Revenue streams

PB Fintech generates revenue from the following services it provides to its insurers and lending partners:

• Online marketing and consulting services where the fee is based on the type of service provided.
• Technology services for enhancing their tech capability, digitising and enhancing their platforms, and customer service.
• Through OFS, shareholder Softbank (SVF Python II Cayman) Limited would sell equity shares worth Rs. 1,875 cr.
• The founders are selling shares worth Rs. 58 cr. which includes Rs. 30 cr. and Rs. 12.75 cr. from the Policybazaar’s CEO, Yashish Dahiya and the CFO, Alok Bansal.

About PB Fintech IPO

• It is a 100% book building offer.
• The offer price includes a fresh issue worth Rs. 3,750 cr. and an offer for sale of Rs. 1,959.72 cr. The overall issue size is Rs. 5,709.72 cr.
• The set price band of this issue is Rs. 940 — Rs. 980 and the face value of each share is set to be Rs. 2.
• The lot size is 15 shares worth Rs. 14,700 at the upper range of the price band.
• This IPO opens for subscription on 1 November 2021 and the closing date is 3 November 2021.
• The shares of this company are likely to be listed on BSE and NSE.
• The issue constitutes 12.96% of the post issue paid-up capital of the company.
• The allocation is expected to be finalised by 10 November, and refunds will be initiated by 11 November. Meanwhile, credit of shares in the Demat account is expected by 12 November.
• The company is looking for a market cap of Rs. 44,051 cr. (based on the upper price band of the IPO).

Book running lead managers and registrar of the PB Fintech IPO

The joint global coordinators and lead managers of the PB Fintech IPO are Citigroup Global Markets India Private Limited, HDFC Bank Limited, ICICI Securities Limited, IIFL Securities Limited, Jefferies India Private Limited, Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited.

The issue’s registrar is Link Intime India Private Limited.

Reservation of PB Fintech IPO for various investor categories

• 10% is the maximum subscription amount reserved for retail investors.
• 15% is reserved for the Non-Institutional bidders (NII).
• 75% is reserved for the Qualified institutional buyers (QIBs), wherein 60% is for anchor investors, 1/3rd of which is reserved for domestic mutual funds only.

Continue to read the financials, peer comparison, strengths and risks of PB Fintech.