PolicyBazaar IPO Will Raise Rs 5700 Crore: 5 Facts You Should Know Before Investing

The offer listed today, will close for subscription on November 3, 2021.
The offer listed today, will close for subscription on November 3, 2021.

The eagerly awaited public listing of PB Fintech, the parent company of Policybazaar and Paisabazaar, has successfully been listed in the Indian stock exchange on Monday, besides SJS Enterprises and Sigachi Industries.

Here are the 5 things you need to know about the fintech company’s public listing.

Important Subscription Dates 

The offer listed today, will close for subscription on November 3, 2021. The price band has been fixed at Rs 940-980 per share.

26% Subscription on Day 1

On the first day of its bidding, the public issue of PB Fintech was subscribed 26%, receiving bids for 90.85 lakh equity shares, when the listed offer size was 3.45 crore equity shares, according to the exchange data.

While retail investors bidded for 95% shares against the reserved portion for the section, non-institutional investors subscribed 3% of the portion reserved for them, and institutional buyers subscribed 16%.

Offer Details

The fintech company has plans to raise an amount of Rs 5,700 crore through its public listing, made up of a fresh issue of Rs 3,750 crore, along with an OFS of Rs 1,960 crore.

Amidst the amount coming in from OFS, SVF Python II (Cayman) will sell shares worth Rs 1,875 crore, while investors Yashish Dahiya, Alok Bansal, founder United Trust, Shikha Dahiya and Rajendra Singh Kuhar will cumulatively sell shares worth Rs 85 crore.

How will the Company Utilise the Issue?

The net proceeds from the fresh issue of Rs 3,750 crore will be used for:

  • enhancing visibility and awareness of the company’s two brands – Policybazaar and Paisabazaar.
  • Invest in new opportunities to expand consumer base, including offline presence,
  • Acquisitions and strategic investments,
  • Expansion outside of Indian markets, and
  • General corporate purposes, states a source.

Know the Company’s Promoters 

The shareholders of PB Fintech are Makesense Technologies, SVF Python II (Cayman), Tencent Cloud Europe BV, SVF India Holdings, Claymore Investment, Etechaces Employees Stock Option Plan Trust, and Tiger Global Eight Holdings, among others.

The aforementioned companies hold a total of 51.22% stake in the company.

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