PB Fintech, the group that owns websites PolicyBazaar and PaisaBazaar, saw its shares listed at a premium of 23%. This premium is against the issue price of Rs. 980 as of 15 November 2021. So, let’s delve into knowing more about the IPO and the subsequent performance of PB Fintech below.
Highlights of PB Fintech IPO
- PB Fintech made a stunning IPO debut from 1 November to 3 November 2021.
- Its issue size was Rs. 6,273.5 crores.
- Moreover, its issue price was in the price band of Rs. 940 – Rs. 980, allowing for a minimum investment amount of Rs. 14,700 at a minimum bid of 15 shares.
- PB Fintech raised Rs. 5,625 crores through its IPO. The IPO consisted of an offer of sale and an initial share. The new issue was for Rs 3,750 crores, and OFS (offer of sale) was for Rs. 1,960 crores.
- This company was listed for trading on the National Stock Exchange and Bombay Stock Exchange on Monday, 15 November 2021.
Analysts and trading experts expected the stocks to perform well, given the bull run the market is experiencing. They predicted the scrip would trade at a premium of 5-10%.
Despite investors subscribing for the initial share sales 16.58 times, experts were worried about the loss-making performance of this company. Furthermore, analysts expected the stocks to trade at Rs. 1,040 – Rs. 1,050 which is at a premium against the final issue price of Rs. 980.
However, PB Fintech beat all expectations on its debut on the bourse. The trading started at a 17.3 % premium on debut day. The share price listed at Rs. 1,150. Moreover, it reached a high of Rs. 1,249 on intraday trading, which was a 27.4% gain. Analysts did not expect this massive leap and attributed it to this company’s vast market share (93.4%) and revenue.
The shares closed at Rs. 1,202.93 at a premium of 22.74%, nearly 23%, outstripping all expectations. In terms of the volume of shares traded, 12.93 lakhs of shares exchanged hands in BSE. Moreover, on the National Stock Exchange, more than 3.63 crore shares were traded.
PB Fintech presently has a market evaluation of Rs. 54,070.33 crores on the BSE.
PolicyBazaar and PaisaBazaar have a massive market share. This is what makes them popular investment options. Having a large number of digital insurance transactions, they are industry leaders in their sphere. Hence, this outlook seems to have buoyed the share prices.
Frequently Asked Questions
- What werethe losses that PB Fintech posted?
Ans. For the financial year 2020, PB Fintech posted a consolidated loss of Rs. 150.24 crores.
- What was PB Fintech’srevenue from operations?
Ans. The revenue from operations for the financial year 2021 stood at Rs. 886.66 crores up from Rs. 771.3 crores at 15% growth.
- What does PB Fintech propose to do with the money it earned from the IPO?
Ans. This company proposes to expand its presence outside of India and enhance the visibility and awareness of its brand.