PB Fintech (Policybazar/Paizabazar) details
PB fintech or Policybazar IPO is coming on 1st November 2021, It is India’s largest online platform for insurance and lending products providing access to insurance, credit, and other financial products through its platforms Policybazaar and Paisabazaar. Policybazar aims to raise Rs. 5,700 crores through fresh issue of equity shares aggregating up to Rs. 3,750 crores and an offer for sale of equity shares aggregating up to Rs. 1,950 crores from existing shareholders.
What are the Risk factors in Policybazar IPO?
1. Policybazar and Paisabazar are online platforms and running on their brand names, so any harm to their brand may harm their business too.
2. Policybazar and Paisabazar are highly dependent on limited insurers and lenders, a major part of their revenue comes from limited partners.
3. They have a history of losses in the past three years and also expect losses in the future.
4. As they are totally online based so any glitches in their system may impact their revenue
5. They plan to spend a part of IPO proceeds on the brand building of their business, benefits out which cannot be assured
What are the strengths in Policybazar IPO?
1. Policybazar and Paisabazar have built a good brand value by offering a wide choice of insurance and credit products
2. Policybazaar was India’s largest digital insurance marketplace with a 93.4% market share based on the number of policies sold in Fiscal 2020.
3. Paisabazaar was India’s largest consumer credit marketplace with a 51.4% market share based on disbursals in Fiscal 2020
4. Policybazaar and Paisabazaar platforms serve Consumers with varied needs, credit profiles, demographics, employment types, and income levels.
What are the products offered by Policybazar/Paisabazar?
Products by Policybazar are:
1. Health insurance
2. Term insurance
3. Motor insurance
4. Travel insurance
5. Savings and investment products
6. B2B offerings
Products by Paisabazar are:
1. Unsecured loans
2. Credit cards
3. Secured loans
4. Credit score
Financial track record of Policybazar/Paisabazar
|Financial Year Ended||Revenue (₹ Crores)||Loss for the period (₹ Crores)||EPS (₹)|
|Three months ended June 2020||191.27||-59.753||-1.65|
|Three months ended June 2021||258.17||-110.84||-2.91|
Objective behind IPO
1. Enhancing visibility and awareness of their brands
2. to expand their Consumer base including their offline presence
3. Strategic investments and acquisitions
4. Expanding their presence outside India
5. General corporate purposes
Policybazar IPO open date & close date
1st November 2021 to 3rd November 2021
Policybazar IPO Finalization of Allotment, refund date & listing Date
Allotment date: 10th November 2021, Refund date: 11th November 2021, Listing date: 15th November 2021
Policybazar IPO allotment check
Allotment can be checked through their registrar linkintime.co.in
Policybazar IPO price band
|Price range||940 – 980|
|Minimum order quantity||15|
Policybazar IPO GMP today
Grey market price at a premium of Rs 100 as of 3rd Nov 2021
Is Policybazar IPO price overpriced?
P.E ratio could not be computed as the EPS is negative from the last three years however if I compute it will be negative P.E ratio, thus I cannot ascertain whether it is overpriced or underpriced.
Policybazar IPO review
The company had a good brand value and increase revenue over the last three years but the profit is also declining consistently, and as it is a loss-making company investment is not an option. But seeing its brand value and marketing skills it may list on a premium.
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Disclaimer: I am not SEBI registered, Kindly do your own research before any decision, my views are for educational purpose only