Policybazaar Parent PB Fintech IPO To Open Today. Here Are Details Before You Subscribe

Proceeds of the fresh issue will be used towards enhancing visibility and awareness of the company's brands, to look for new opportunities to expand growth initiatives to increase the consumer base including offline presence.

Here are the details:

Face value: Rs 2 per share.

Minimum lot: 15 shares and multiples.

Price band: Rs 940-980.

Fresh issue: Rs 3,750 crore.

Offer for sale: Rs 1,959.7 crore.

Listing: National Stock Exchange and BSE.

Book running lead managers: Kotak Investment Banking, Morgan Stanley India Co., Citigroup Global Markets India, ICICI Securities, HDFC Bank, IIFL Securities and Jefferies.

PB Fintech’s business

PB Fintech launched its flagship platform—Policybazaar, in 2008. According to Frost & Sullivan, Policybazaar was India’s largest digital insurance marketplace in fiscal 2020 with a 93.4 per cent market share based on the number of policies sold, reported Investing.

Notably, 65.3 per cent of all digital insurance sales in India by volume were transacted through Policybazaar. As of March 31, 2021, PolicyBazaar had more than 48 million consumers registered on its platform who opted for over 19 million policies from its insurer partners. The online insurance aggregator witnessed 126.5 million visits in fiscal 2021. The traffic aided it to capture behavioral and other data insights.

These insights continue to be a source of significant competitive advantage over other insurance distributors. In 2014, PB Fintech started Paisabazaar to help Indians in selecting multiple personal loans and credit cards.

According to Frost & Sullivan, Paisabazaar was India’s largest digital consumer credit marketplace with a 51.4 per cent market share, based on disbursals in fiscal 2020. PB Fintech operates an asset-light capital model and does not underwrite any insurance or retain any credit risk.

Competition

While PB Fintech has no listed peers, insurers have now started pushing their products through their own websites and mobile applications.

Risks

- The Covid-19 pandemic, or a similar public health threat, could adversely affect its business.

- The company’s insurer and lending partners failing to offer insurance and credit products catering to the evolving needs of consumers.

- Any harm to the brand, failure to maintain and enhance its brand recognition or reputation in a cost-effective manner.

- Policybazaar has a history of losses and the company anticipates increased expenses in the future.

-  Policybazaar’s business is subject to intense competition.