operator PB Fintech shares make a decent debut, stock lists with 17% premium at Rs 1,150
The initial share sale of online insurance and lending products distributor has seen a good subscription of 16.58 times during November 1-3, garnering bids worth Rs 56,093.64 crore.
The portion set aside for qualified institutional buyers was subscribed 24.89 times, and that of non-institutional investors saw 7.82 times subscription.
PB Fintech, mopped up Rs 5,625 crore through its public issue that composed of fresh issuance of shares worth Rs 3,750 crore and an offer for sale of Rs 1,960 crore by selling shareholders
With fresh issue proceeds, the company will enhance visibility and awareness of its brands (including but not limited to Policybazaar and Paisabazaar) and presence outside India.
PB Fintech’s Policybazaar is India’s largest digital insurance marketplace with a 93.4 percent market share based on the number of policies sold as on FY20
In FY20, 65.3 percent of digital insurance sales in India by volume were transacted through Policybazaar. It became a direct insurance broker on June 10, 2021.
Dalal & Broacha Stock Broking said “The company is loss-making but insurance penetration is low in India, online is even very less and the scope for such aggregators/online brokers is very large,”