PolicyBazaar IPO: The Rs 5625 crore IPO of PB Fintech, the parent company of insurance aggregator PolicyBazaar, has opened for subscription today. Under this issue, new shares worth Rs 3750 crore will be issued while shares worth Rs 1875 crore will be issued under offer for sale. Talking about the primary market, its prices are at a premium of about Rs 150 against the upper price of Rs 980 in the price band. However, there is confusion in the minds of investors about investing in this as it is running in loss and its valuation also looks expensive. Due to all these reasons, analysts also have mixed opinions regarding this issue.
PB Fintech is the leading online platform for Insurance and Loans. Talking about the financial position of the company, it has not made profit in the last three financial years, but the revenue has increased continuously and the loss is gradually decreasing.
IPOs News: IPOs of three companies including PolicyBazaar opened, see details from price band to lot size here
This is the opinion of experts regarding investment
- According to Abhay Doshi, Founder, UnlistedArena.com, the insurance sector is moving ahead and companies like PB Fintech are growing due to increasing financial literacy and legislation related to car insurance in the country. However, according to Doshi, considering the upper price of the price band, its issue price is 44 times as compared to sales, which looks expensive. According to Doshi, there may be a listing gain of 15-20 per cent, but investors will have to keep an eye on its performance before investing for the long term and then take a decision accordingly.
UP Assembly Election 2022: Congress makes separate manifesto for women, Priyanka Gandhi promises free cooking gas and bus travel
- According to Aditya Kondawar, COO, JST Investments, the insurance sector in India is still not very big and the scope for online insurance is very less, then the aggregators/online brokers have a lot of scope. However, now instead of the platform of aggregators like Policybazaar, brokerages, fintech companies and live and general insurance companies are creating their own platform. HDFC ERGO and ICICI Lombard have already exited PolicyBazaar. Apart from this, it is running in loss and the issue is also expensive. In such a situation, Kondavar has given it a rating of Avoid.
- INDmoney has said in its report that since it is a technology-based startup, one should not worry much about its premium valuation. Last week, its shares were at a price of Rs 2100-2300 in the unlisted market. Analysts in the report said that investors who can take more risk on investing in technology-based platforms, should consider investing in this issue.
(Article: Surbhi Jain)
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
Get Business News ,, latest India News ,, and other breaking news on share market, investment scheme and much more on Business Khabar. Like us on Facebook, Follow us on Twitter for latest financial news and share market updates.
.