Policybazaar IPO Subscribed 16 Times With Bids Worth $7.5 Bn

SUMMARY

Institutional investors booked their earmarked portion 24.89 times

Retail investors bid for 2,01,17,655 shares (3.31 times) as against 60,73,026 shares allocated

The IPO opened on November 1st, at a price band of INR 940-980

The initial public offering (IPO) of P.B. Fintech, the parent company of Paisabazaar and Policybazaar, ended on Wednesday with robust investor demand across categories.

The offer of 3,45,12,186 shares was subscribed 16.59 times, thereby bids being placed for 57,23,84,100 shares.

At the upper limit of the IPO price band of INR 940 – INR 980, the offer has attracted bids worth a total of nearly $7.53 Bn (INR 56,093.64 Cr)

Institutional investors did not show immense interest initially compared to the retail investors; however, by the end of the offer, they were at the forefront in terms of subscriptions.

Qualified Institutional Buyers (QIB) booked their earmarked portion 24.89 times. Institutional investors placed bids for 48,10,22,745 shares, against the 1,93,29,621 shares on offer for them.
Non Institutional Investors (NII) too were not behind and placed bids for 7,12,43,700 shares compared to allocated 91,09,539 shares, thereby subscribing to the earmarked portion 7.82 times. NIIs comprise corporates and individuals (other than retail investors).
Retail Individual Investors (RII) also oversubscribed the earmarked shares. They bid for 2,01,17,655 shares (3.31 times) as against 60,73,026 shares put aside for them.

The IPO opened on November 1st, at a price band of INR 940-980. Its shares are expected to be listed on the stock exchange in the next 10 days.

On Friday (October 29th), Policybazaar parent, P.B. Fintech mobilised INR 2,569.37 Cr from 155 anchor investors, including major global investors Abu Dhabi Investment Authority, Canada Pension Plan Investment Board, and Goldman Sachs. The IPO includes a fresh issue of up to INR 3,750 Cr.

The fintech unicorn’s OFS includes shares worth up to INR 1,875 Cr from SVF Python II (Cayman) Limited.

These include Policybazaar CEO and cofounder Yashish Dahiya’s stocks worth INR 30 Cr on the block and cofounder and CFO Alok Bansal’s stocks worth up to INR 12.75 Cr.

Founded by Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar in 2008, PolicyBazaar aggregates insurance policies from a range of providers for use-cases, including life insurance, automobile insurance, health insurance and more.