The initial public offering (IPO) of PB Fintech that owns Policybazaar and Paisabazaar, has seen good demand from investors as it received bids for 57.23 crore equity shares against offer size of 3.45 crore equity shares, which resulted into a subscription of 16.59 times on November 3, the final day of bidding.
The qualified institutional investors, for whom the 75 percent of the offer is reserved, have put in bids 24.89 times the portion set aside for them. Non-institutional investors have bought 7.82 times shares of their total reserved portion.
Retail investors' response to the offer remained strong as their reserved portion was subscribed 3.31 times.
The Policybazaar IPO opened on November 1 with the aim to mop up Rs 5,700 crore, of which Rs 2,569 crore is already being raised through anchor book on October 29. The offer comprises a fresh issue of Rs 3,750 crore and an offer for sale of Rs 1,960 crore by selling shareholders, including SVF Python II (Cayman).
The fresh issue proceeds are going to be utilised for enhancing visibility and awareness of its brands (Policybazaar and Paisabazaar) (Rs 1,500 crore), new opportunities to expand consumer base including offline presence (Rs 375 crore), strategic investments and acquisitions (Rs 600 crore), and expanding presence outside India (Rs 375 crore).
Policybazaar's revenue growth at a 2-year CAGR of more than 34 percent during FY19-FY21, has been largely driven by Policybazaar's presence in growing ecosystem, increasing penetration & awareness for financial products, robust platform led by proprietary technology, strong management pedigree and brand pull besides strong relationship with insurer, lenders and repeat purchase from existing customers, said KRChoksey Research.
Also read - Policybazaar IPO opens: 10 key things to know about the issue, company
The brokerage likes the company's focus on growth, willingness to do more experiments while focusing on core business, international expansion and inorganic growth plans. "Considering multiple growth drivers and leadership position of Policybazaar in the digital ecosystem, investors should look to invest in the IPO for listing as well for long term gains."
PB Fintech, which is founded by Yashish Dahiya and Alok Bansal, has, over the years, built India's largest online platform for insurance and lending products leveraging the power of technology, data and innovation.
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