TheNFAPost Podcast

Fintech, the parent company of Policybazaar and Paisabazaar, witnessed a subscription of 1.59 times on November 2 of its initial public offer. As per the data shown by the exchanges, the size of the IPO is 3.45 crore shares and the offer received bids for 5.47 crore equity shares.

At the forefront were the retail investors and 10% of the offer size was reserved for them. They received bids for 2.04 times the portion set aside for them.

The reserved portion of qualified institutional buyers was subscribed 2.08 times and that of non-institutional investors saw subscription of 23 percent.

PB Fintech which offers online platform for insurance and lending products, focuses to garner Rs 5,700 crore through IPO that comprises a fresh issue of Rs 3,750 crore and the remaining is an offer sale by selling shareholders including SVF Python II (Cayman).

“The company has created consumer-friendly brands offering wide choice, transparency and convenience. Company being collaborative partner for insurer and lending partners has high renewal rates providing clear visibility into future business and delivering superior economics,” said Hem Securities.

“Company also derives benefits from economies of segmentation with low operating costs and capital requirements. Hence looking after all this, we recommend “subscribe” on issue for both listing gain & long term purpose,” the brokerage added.

The money from the fresh issue will be used for enhancing visibility and awareness of its brands, new opportunities to expand consumer base, strategic investments and acquisitions, and expanding presence outside India.

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