The parent company of platforms such as PolicyBazaar and PaisaBazaar marked its debut at Rs 1,150, which is 17.35 per cent above its issue price of Rs 980 on both the bourses. To incentivise investors, the fintech player further added 6 more per cent to Rs 1,209.45 during the trading session, taking the total gains over 23 per cent. After this strong listing, investors have turned cautious. They are worried partly because other listed startups were bleeding on Monday.
Vikas Jain, Senior Research Analyst, Reliance Securities, said the PB Fintech bet was promising in the longer run. The market received the listing on a positive note, he said, advising investors to hold the shares despite the pricey valuations. “The demand for fintech players and new-age companies has been very strong, considering the listing of Nykaa and PB Fintech. One should wait for the listing on One97 Communications, the parent company of Paytm,” he added.
The initial stake sale of PB Fintech was open for subscription from November 1-3. It raised Rs 5,625 crore via the primary route, selling its shares for Rs 940-980 a piece.
Astha Jain, Senior Research Analyst, Hem Securities, suggested investors book partial profits. “Short-term investors can sell half of their holding and keep the remaining portion for the longer run. The fintech player has delivered decent returns,” she added.
Ahead of the listing, the scrip was commanding a premium of Rs 150-160 in the grey market, hinting towards a reasonable listing pop at Dalal Street. It performed on expected lines.
Though the company has bright prospects, its issue pricing discounts all near-term positives, said Akhil Rathi, Vice-President Advisory at Marwadi Shares and Finance. “Long-term investors should wait to enter the stock as the valuations are high for a loss-making company.”
The issue was subscribed 16.59 times, thanks to the solid interest of institutional buyers. However, analysts were concerned about the expensive valuations of the issue.
The portion for qualified institutional buyers was subscribed 24 times, whereas the non-institutional buyers portion attracted 7.82 times bid. Retail investors’ portion received 3.31 times bidding.
Vishal Balabhadruni, BFSI Analyst, CapitalVia Global Research, said the issue seemed to be good for the short term or listing gains but long-term investors must be cautious. “Investors with short-term views may book profits and investors who want to hold for the long term may hold. However, we suggest that such investors should wait for the price to correct before acquiring more,” he added.
PB Fintech has now joined the list of listed homegrown unicorns, which has Nykaa and Zomato. Paytm is the next addition to the list as it is likely to debut on Thursday, November 18.
Aayush Agrawal, Senior Research Analyst-Merchant Banking, Swastika Investmart. said, “PB Fintech got listed in line with our expectations.” The company is a leading fintech player that aims to enhance its visibility and awareness along with increasing its customer base, which is expected to be beneficial for the company, he added. “Existing investors are advised to hold the stock.”
