Policybazaar IPO to list on bourses today; know investors strategy for this issue from Anil Singhvi

The shares of Policybazaar will be listed on the bourses on Monday, November 15, 2021. The Rs 5,710-crore initial public offer of PB Fintech Ltd (PBFL), which operates online insurance marketplace Policybazaar and credit comparison portal Paisabazaar, opened for subscription on November 1 and closed on November 3, 2021.  

The company had fixed a price band of Rs 940 - 980 per share for this IPO. 

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Earlier, talking about the IPO of online insurance marketplace Policybazaar, Zee Business Managing Editor Anil Singhvi had said, " Only risk-taking investors with a long-term view should apply for this IPO." 

Talking about positives of the company, the Zee Business Managing Editor said the company is a market leader in its segment and is backed by good strong growth track record. It also has aggressive growth plans, said Anil Singhvi.   

He said loss-making business and risk of change in regulations may affect this insurance marketplace firm.   

The issue comprised fresh and OFS. Shares for the fresh issue is 3.827 - 3.989 crore shares and OFS is 2- 2.084 crore shares.  

The company will not receive any proceeds from the OFS part of the issue. Of the net proceeds from the fresh issue, Rs 1,500 cr will be used for enhancing the visibility and awareness of its brands, Rs 375 crore will be utilized in funding new opportunities, Rs 600 crore will be used for funding strategic investments and acquisitions and Rs 375 crore will be used to expand business outside India. Residual funds will be used for general corporate purposes. 

The book running lead manager of this IPO are Kotak Mahindra Capital Company Ltd., Morgan Stanley India Company Pvt. Ltd., Citigroup Global Markets India Pvt. Ltd., ICICI Securities Ltd., HDFC Bank Ltd., IIFL Securities Ltd. and Jefferies India Pvt. Ltd.