PB Fintech Limited (Policybazaar) IPO
PB Fintech Limited whose flagship brands are Policybazaar and Paisabazaar is going to launch its IPO. The IPO’s date, price band, lot size isn’t out yet.
In 2008, PB Fintech launched Policybazaar to simplify the insurance space by founders Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar as an insurance comparison website. Over the years, the website expanded to become an insurance marketplace. In 2015, Policybazaar also launched its app on Android and iOS. Based on the number of policies sold, today Policybazaar is India’s largest digital insurance marketplace with a 93.4% market share in FY20. Around 65.3% of all digital insurance sales in India were done by Policybazaar in FY20. As of March 2021, on the Policybazaar platform, 51 insurers offer over 340 terms, health, motor, home, and travel insurance products.
According to Crunchbase, Policybazaar has raised a total of $766.6 million across 13 rounds including secondary share transactions. Info Edge which runs Naukri.com was the seed investor in Policybazaar with an investment of $6.9 million in 2008. Over the years, the company has added many marquee investors to its roster including Intel Capital, Tiger Global, Premji Invest, True North, SoftBank, Temasek, and many others.
In 2014, PB Fintech launched its second brand Paisabazaar as a loan marketplace. It is now the largest digital credit marketplace in India with a 51.4% market share based on disbursals in FY20. Paisabazaar is also used to access credit scores. As of March 21, almost 21.5 million users access credit scores through the platform. Paisabazaar with banks, NBFCs, and fintech players has around 54 partnerships to offer a wide variety of products including personal loans, business loans, credit cards, home loans, and loans against property.
Qualitative Factors
- They have created solid and Consumer-friendly brands offering a wide choice, transparency and convenience.
- It’s Proprietary Technology, Data and Intelligence Stack.
- Collaborative partner for Insurer and Lending Partners.
- Its scale gives us unique self-reinforcing flywheels and strong network effects.
- High renewal rates provide clear visibility into future business and deliver superior economics.
- Benefits from economies of segmentation.
- A capital-efficient model with low operating costs.
- Founders with clarity of purpose backed by experienced management.
Objects of the issue
- Enhancing visibility and awareness of brands, including but not limited to Policybazaar and Paisabazaar.
- New opportunities to expand Consumer base, including offline presence.
- Strategic investments and acquisitions.
- Expanding their presence outside India.
- General corporate purposes.
Financials of Policybazaar IPO
| Parameter (₹ in million) | FY21 | FY20 | FY19 |
| Total Assets | 23,307 | 15,759 | 7,514 |
| Total Revenue | 9,574 | 8,555 | 5,288 |
| Total Expenses | 10,993 | 11,504 | 8,662 |
| Loss for the year | (1,502) | (3,040) | (3,468) |
Policybazaar IPO Issue Details
| Issue Open | 01 Nov 21- 03 Nov 21 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 6,07,30,265 equity shares of ₹ 2 (aggregating up to ₹ 5,709.72 Crores) |
| Fresh Issue | [.] equity shares of ₹ 2 (aggregating up to ₹ 3,750 Crores) |
| Offer for Sale | [.] equity shares of ₹ 2 (aggregating up to ₹ 1,959.72 Crores) |
| Face Value | ₹ 2 per equity share |
| Issue Price | ₹ 940 to ₹ 980 per equity share |
| Market Lot | 15 shares |
| Min Order Quantity | 15 shares |
| Listing At | BSE, NSE |
| Allotment Date | 10 Nov 21 |
| Listing Date | 15 Nov 21 |
Policybazaar IPO Bid Details
| Sl No. | Category | Subscription Status (No. of times) | ||
| 01 Nov 21 | 02 Nov 21 | 03 Nov 21 | ||
| 1. | QIB | 0.56 | 2.08 | 24.89 |
| 2. | NII | 0.06 | 0.23 | 7.82 |
| 3. | RII | 1.18 | 2.04 | 3.31 |
| Total | 0.54 | 1.59 | 16.59 | |
| Joint Global Co-ordinators and Book Running Lead Managers |
| 1. Kotak Mahindra Capital Company Limited |
| 2. Morgan Stanley India Company Private Limited |
| 3. Citigroup Global Markets India Private Limited |
| 4. ICICI Securities Limited |
| 5. HDFC Bank Limited |
| 6. IIFL Securities Limited |
| 7. Jefferies India Private Limited |
| Registrar to the Offer |
| Link Intime India Private Limited |
| C 101, 247 Park L.B.S. Marg Vikhroli (West) Mumbai 400 083 Maharashtra, India Telephone: +91 22 4918 6200 E-mail: policybazaar.ipo@linkintime.co.in Website: www.linkintime.co.in Investor grievance E-mail: policybazaar.ipo@linkintime.co.in Contact Person: Shanti Gopalkrishnan SEBI Registration No.: INR000004058 |
Registered and Corporate Office: Plot No. 119, Sector 44 Gurgaon, Haryana 122 001, India |
Source: PB Fintech Limited DRHP
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