INSUBCONTINENT EXCLUSIVE:
Policybazaar IPO: The company has fixed the price band of Rs 940 to Rs 980 per sharePolicybazaar's initial public offer (IPO) was subscribed
16.59 times on the third and final day of its issue, according to subscription data on the stock exchanges
The IPO of the country's leading online insurance aggregator opened for subscription on Monday, November 1, and closed today, November 3 -
remaining open for investors for a period of three days.On Wednesday, qualified institutional buyers or QIB showed greater interest as the
portion reserved for them was subscribed 24.89 times - the highest among the three groups of investors
The portion set aside for retail individual investors (RII) was subscribed 3.31 times, while the portion reserved for the non-institutional
individual investors was subscribed 7.82 times.The company had fixed a price band of Rs 940 to Rs 980 per equity share for its public offer
The public offer comprises a fresh issue of Rs 3,750 crore, along with an offer for sale (OFS) of Rs 1959.72 crore by the existing promoters
and shareholders.The online aggregator is operated by PB Fintech, catering to consumers and insurer partners to buy and sell insurance
The platform provides information, choice, and transparency in terms of insurance policies."PB Fintech has reported a healthy 80 per cent
CAGR rise in revenues from Rs 492 crore in FY19 to Rs 887 crore in FY21, backed by a robust rise in insurance commission income.While the
company has not yet reported a profit, the loss has narrowed from Rs 347 crore in FY19 to Rs 150 crore in FY21
Investors should bear in mind that the company could continue to report losses over the medium-term.The company's founder has hinted that
the focus is right now on growth, and not on profitability, as the insurance industry remains underpenetrated.Since its inception, the
company has grown to become India's largest digital insurance marketplace, with a market share of 93.4 per cent (based on the number of
policies sold),'' said SEBI-registered investment advisor INDmoney said in a report.
