PolicyBazaar IPO News: The IPO of PB Fintech, which owns Policy Bazaar and Paisabazaar.com, has opened from today. This issue will close on 3rd November. Now you have two days left to invest in PB Fintech.
The price band of PolicyBazaar IPO or say PB Fintech IPO is Rs 940-980. One lot of issue is of 15 shares. That is, you will need to buy at least 15 shares. In terms of upper price band Rs 980, at least Rs 14700 will have to be invested in it. The allotment of shares will take place on November 10 and the listing may happen on November 15.
Policybazaar is preparing to raise Rs 5709.72 crore from this IPO. It has a fresh issue of Rs 3750 crore. Whereas the shares of 1959.72 crores will be sold in the Offer for Sale (OFS).
Business expansion
The company says that Rs 1,500 crore from the fresh issue will be used to strengthen the brand and Rs 375 crore will be used to explore new opportunities. Whereas, Rs 600 crore will be used to fund strategic investments. The company says that Rs 375 crore will be used for expansion of business outside India.
Invest money or not
According to KR Choksi Securities, the best part of the company is that it is working in the big market of the insurance sector, which still has a lot of opportunities. Because the insurance market is growing rapidly. The company is in a leadership position in the digital market place. The company has been successful in wooing new customers, which is benefiting it.
This year, users visited the website more than 12.65 million times. The company has the ability to retain its customers. Along with this, the company is also benefiting from better relationship with insurance companies and lending partners. Therefore, the future of the company is definitely bright.
But the other aspect is also that people’s jobs have been lost due to coronavirus infection, due to which their ability to buy the policy has decreased. The company has already incurred losses. Along with this, non-compliance of regulations is the biggest problem of its business.
KR Choksi suggests that if you are a long term investment player then you can invest in policy market IPOs. If you are thinking of making profit on the listing of IPO, then you may be disappointed.
Rajeev Kapoor, Vice President, Trustline Securities advises that in terms of valuation, it has a P/E of 47.6 as per the upper price band after listing, which is higher than the rival companies. Considering the business model and valuation of the company, Trustline Securities has given a neutral rating to this issue.
Market experts say that PB Fintech has not yet come in profit. It is not known how long this company will be profitable. Another risk is that when the rules change in online insurance, it is not known.
So if you can wait for a long time then you can definitely invest in the policy market.
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