PB Fintech’s IPO has opened for investment today i.e. on 1st November. This issue can be subscribed till November 3. PB Fintech plans to raise Rs 5710 crore through this IPO.
PB Fintech IPO: The IPO of PB Fintech, which operates Policybazaar and Paisabazaar.com, has opened for investment today i.e. on November 1. This issue can be subscribed till November 3. PB Fintech plans to raise Rs 5710 crore through this IPO. The company has fixed the price band for the issue at Rs 940-980. Apart from the issue of fresh equity shares in this issue, there will also be an offer for sale (OFS). Anil Singhvi, Managing Editor of dgmartpro Business has also given his opinion regarding the issue. He says that only risk-taking investors should invest in it. The company’s shares can be listed in the stock market on November 15.
If you have the ability to take risk, then invest money
Anil Singhvi says that only investors should invest money in PB Fintech’s IPO, who have the ability to take risk and their investment approach is long term. He says that this company operates Policybazaar and Paisabazaar.com. Both are market leaders in their respective fields. It is the leader company in terms of online insurance and online loan lending. They have monopoly in this business. The company’s revenue growth has been great, there is a growth plan in the international market as well. In such a situation, it is certain that there will be growth for a long time.
what is risk
Anil Singhvi says that PB Fintech has not come in profit yet. It is not known how long the company will be profitable. In such a situation, many investors may wonder whether to participate in the loss making business or not. Another risk is that when the regulation changes in online insurance, it is not known. Changing the regulation can also change the dynamics. At the same time, there is also a risk of market volatility.
?#IPOUpdate | PB Fintech IPO will be open from today till November 3…
Price Band ₹940-980, Minimum investment ₹14700…
Subscribe or Skip IPO?
— dgmartpro Business (@ZeeBusiness) November 1, 2021
IPO: Price Band and Lot Size
The price band for Policybazaar’s IPO has been fixed at Rs 940-980. One lot of the issue of the company is of 15 shares. That is, it will be necessary to buy at least 15 shares. In terms of upper price band Rs 980, it will be necessary to invest at least Rs 14700 in it. The allotment of shares will take place on November 10.
About the IPO
The size of Policybazaar’s IPO will be around Rs 5710 crore. In this, fresh equity shares of Rs 3750 crore will be issued. At the same time, shares worth Rs 1959.72 crore will be sold under Offer for Sale OFS. SVF Python II (Cayman) will sell shares worth Rs 1875 crore in OFS. On the other hand, Yashish Dahiya will sell shares worth Rs 30 crore. Shares worth Rs 12.75 crore will be sold by Alok Bansal and Rs 12.50 crore by Shikha Dahiya. Some other investors will also reduce stake. The company will use the proceeds from the IPO to strengthen the brand. Apart from this, some funds will be spent for funding business expansion and strategic investments.