PB Fintech Limited IPO (PolicyBazaar IPO) details – Date, Price, Size, Allotment Status, Subscription

IPO-Note	PB Fintech Limited
Rs 940 – Rs 980 per Equity share	Recommendation: Subscribe

Company Profile: –

PB Fintech is an Insurance aggregator and Consumer credit company. PB Fintech is a multinational financial technology company which offers insurance products through its online platform ‘Policybazaar’ and financial products through ‘Paisabazaar.’They provide convenient access to insurance, credit and other financial products and aim to create awareness amongst Indian households about the financial impact of death, disease and damage.

PolicyBazaar IPO – Details

Issue Details
Objects of the issue	·Enhancing visibility and awareness of their brands, including but not limited to “Policybazaar” and Paisabazaar”; ·New opportunities to expand their Consumer base including  offline presence; ·Strategic investments and acquisitions ·Expanding our presence outside India; and · General corporate purposes.
Issue Size	Total issue Size -Rs. 5625.00 Cr. Offer for Sale – Rs. 1875.00 Cr. Fresh Issue- Rs 3750 Cr
Face value	Rs 2.00 Per Equity Share
Issue Price	Rs. 940 – Rs. 980
Bid Lot	15 shares
Listing at	BSE, NSE
Issue Opens:	01st Nov, 2021 – 03th Nov, 2021
QIB	75% of Net Issue Offer
Retail	10% of Net Issue Offer
NIB	15% of Net Issue Offer

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PolicyBazaar IPO Financial Performance:

PolicyBazaar IPO Shareholding Pattern:

Shareholding Pattern	Pre- Issue	Post Issue
Promoters & Promoter Group	0.00 %	0.00%
Public	94.52%	94.99%
Employee Trust	5.48%	5.01%

Source: RHP, EWL Research

PolicyBazaar IPO Strengths:

• Leading player in online insurance distribution.

• Developed itself as provider of wide range of insurance and consumer credit products.

• Capital efficient model with low operating costs.

• Strong brand recall; healthy mix of repeat customers

• Approval of Brokers License would enable the undertaking of group/corporate businesses

• Founders with clarity of purpose backed by experienced management

PolicyBazaar IPO Key Highlights:

• Revenue from operation has grown at a CAGR of ~34% over FY19–21, led by insurance web aggregator services, which grew ~40% over FY19–21.

• PB Fintech reported loss of INR150.2 Cr in FY21. Within this, Policybazaar reported loss of INR175.8 Cr, while Paisabazaar posted profit of INR13.6 Cr (after reporting losses in previous years).

• Insurance business comprises ~69% of total operating revenues. Insurance business sees 40% revenue CAGR over FY19-21.

• Contribution margin expands sharply to ~40% in FY21. (13.7% in FY20).

• PolicyBazaar has partnered with 51 insurers, and 4.8 Cr consumers have registered on its platform.

• On its PolicyBazaar Platform, company has sold 1.92 Cr policies on its platform and has 96 Lakh unique transacting customers in FY21.

• Paisabazaar is the largest digital consumer credit marketplace, with market share of 51.4% on the basis of disbursals. It has partnered with 54 lenders across banks, NBFCs, and fintechs.

PolicyBazaar IPO Risk Factors:

• Rising competition from other digital players / fintechs, particularly in non-life insurance and consumer credit

• Many insurance companies are focusing on scaling their online digital channels, which poses a risk

• Any adverse regulatory changes could pose a major threat to the business

Outlook:

PB Fintech Limited has been successful in building India’s largest online marketplace for insurance and lending products, leveraging the power of technology, data, and innovation. PolicyBazaar, India’s largest digital insurance marketplace, with market share of 93.4% (based on the number of policies sold), has received the Brokers License in June 21, which would allow it to target offline and corporate businesses as well. The overall Insurance industry is expected to see an ~18% CAGR over FY20–30, within which Life Insurance is expected to grow at ~19% and Non-Life Insurance at ~14%. Within Non-Life, Health Insurance is expected to see a ~15% CAGR and Motor a ~14% CAGR. 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.

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