The issue is the biggest, and the most buzzed, among the three IPOs that hit the primary market this week.
The company is selling its shares in the range of Rs 940-980 apiece.
The issue has generated mixed recommendations from analysts, with some raising questions over the valuations. However, the majority believe it is an issue worth subscribing to, given the underpenetrated insurance market.
PB Fintech mopped up Rs 2,569.37 crore from 155 anchor investors on Friday, ahead of IPO opening. The company finalised the allocation of 2.62 crore equity shares to anchor investors at a price of Rs 980 per share.
Amarjeet Maurya, AVP- Mid Caps, Angel One said the company provides convenient access to insurance, credit, and other financial products and aims to create awareness in India about the financial impact of death, disease, and damage.
“In terms of valuations, the post-issue FY2021 EV/Sales works out 47.6x, which is high, considering its historic performance in terms of bottomline,” Maurya added, who has recommended a ‘neutral’ rating on the issue.
Meanwhile, brokerage KRChoksey said it likes the company’s focus on growth, willingness to do more experiments while focussing on core business, international expansion and inorganic growth plans.
It noted that Policybazaar has, over the years, raised $400 million and it has 60-65 per cent cash on books, which will help in expansion and consumer acquisition. “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,” it said.
The issue was subscribed 53 per cent on Monday, the first day of bidding.
