Policybazaar debuts at over 17 pc premium over issue price

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The initial public offering (IPO) of PB Fintech, the parent company of Policybazaar and Paisabazaar, listed on the stock exchanges on Monday with a gain of 17 percent.

Policybazaar had set its IPO at Rs 980 per equity share, and it debuted at Rs 1,150 and continued to move around this range. The current market capitalisation of the company stood at Rs 52,647 crore.

Policybazaar has become the fourth Indian startup in the recent past to become a public company, the other three being Zomato, Freshworks and Nykaa. The listing gains of Policybazaar on the first day though, has been quite muted compared to the other three.

Policybazaar founder Yashish Dahiya

However, the initial listing gains of Policybazaar is above expectations, as the grey market premiums of the company was in the range of 5-6 per cent above its IPO price.

Policybazaar raised Rs 5,625 crore through its IPO, which was subscribed 16.58 times when it was open for subscription between November 1st and 3rd at a price range of Rs 940-980. The portion reserved for qualified institutional investors was subscribed 24.89 times, the portion of retail investors was booked 3.31 times and the non-institutional investors witnessed 7.82 times subscription.

The IPO of Policybazaar consisted of Rs 3,750 crore and an offer for of sale of Rs 1,960 crore. It had raised Rs 2569.73 crore from 155 anchor investors ahead of its IPO.

The leading names who participated in this anchor round include Fidelity Funds, Abu Dhabi Investment Authority, Goldman Sachs, Aberdeen Global, Nomura, Blackrock, Baillie Gifford, and Canada Pension Plan Investment Board, among others.

The promoters who sold their shares in the IPO include SVF Python II (Cayman), selling shares worth Rs 1,875 crore; Yashish Dahiya, CEO of Policybazaar, worth Rs 30 crore; Alok Bansal worth Rs 12.75 crore; Shikha Dahiya worth Rs 12.50 crore; and Rajendra Singh Kuhar worth Rs 3.50 crore. In addition, Founders United Trust will sell around 2.68 lakh shares, which aggregates to over Rs 26 crore on the upper price band.

The proceeds of the IPO will be used towards enhancing visibility and awareness of the company’s brands to look for new opportunities to expand growth initiatives and increase the consumer base including offline presence.


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