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Policybazaar shares make decent debut, list with 17% premium
Policybazaar parent company PB Fintech initial public offering (IPO) received a good response with the issue subscribed nearly 16.59 times from November 1 to November 3, garnering bids worth ₹56,093.64 crore.
Policybazaar parent company PB Fintech made a good stock market debut as its shares listed at ₹1,150, a 17 per cent premium over its issue price of ₹980 per share on the BSE on Monday. The stock moved higher to ₹1,194.95, a 22 per cent premium to its issue price after it listed
PB Fintech was trading at ₹1,185, up 3 per cent at 10:02am from its opening level on the BSE. In comparison, the S&P BSE Sensex was up 0.40 per cent at 60,928. Around 468,000 equity shares changed hands at the counter on the NSE and BSE.
PB Fintech initial public offering (IPO) received a good response with the issue subscribed nearly 16.59 times from November 1 to November 3, garnering bids worth ₹56,093.64 crore. The institutional portion was subscribed 24.89 times; the wealthy investor portion by 7.82 times and the retail investor portion 3.31 times, data shows.
Motilal Oswal Securities said in an IPO note that the PB Fintech IPO was valued at 46.3x FY22 mcap/sales on a post issue and annualised basis, which seems expensive compared to its global peers.
The PB Fintech IPO consisted of a fresh issue to raise ₹3,750 crore and an offer for sale (OFS) of shares worth ₹1,960 crore by existing shareholders.
PB Fintech has said it wants to use ₹1,500 crore from the net proceeds of the issue for enhancing visibility and awareness of brands, including but not limited to Policybazaar' and Paisabazaar.
The company wants to utilise ₹375 crore for pursuing new opportunities to expand its consumer base including offline presence, ₹600 crore for strategic investments and acquisitions and ₹375 crore for expanding presence outside India.
(With agency inputs)
