PB Fintech owns the most advanced lending and insurance online portal in India. The company has two brands under its name. One is Policybazaar and another one is Paisabazaar. The company not only wants to expand its horizon of business but aims to provide cheapest plans for the customers and pass on awareness regarding financial and health plans. The initial launch by the company was through Policybazaar. Under this it provides information about various plans in India across all the p[ossible insurance segments. It also includes buying of plans online through its portal. The later launch was of Paisabazaar. This brand eases the lending problems on behalf of the customer. It makes loans available quick;ly and with least hassle.
IPO DETAILS
PB Fintech Limited IPO is set to launch on 1st Nov., 2021. The subscription timeline extends till 3rd Nov, 2021. The size for the IPO is 5625.00 Crore Rs..Shares issued through Fresh Issue are worth Rs. 3750 Crore . Shares issued through Offer for Sale are worth Rs. 1875.00 Crore. The lot size is 15 shares and the price range is 940 Rs. – 980 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs.2 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.
TABULAR REPRESENTATION OF IPO DETAILS
| IPO OPENING DATE | 1st Nov, 2021 |
| CLOSING DATE FOR IPO | 3rd Nov, 2021 |
| ISSUE TYPE | Book Built Issue |
| Face Value per share | 2 Rs. per share |
| IPO price band | 940 Rs. – 980 Rs. |
| LOT SIZE | 15 shares |
| MINIMUM ORDER QUANTITY | 15 shares |
| ISSUE SIZE | 5625.00 Crore Rs. |
| OFFER FOR SALE | 1875.00 Crore Rs. |
| FRESH ISSUE | 3750.00 Crore Rs. |
| LISTING AT | NSE, BSE |
| LISTING DATE | 15th Nov, 2021 |
IMPORTANT DATES
| IPO OPENING DATE | 1st Nov, 2021 |
| CLOSING DATE FOR IPO | 3rd Nov, 2021 |
| IPO ALLOTMENT DATE | 10th Nov, 2021 |
| REFUNDS | 11th Nov, 2021 |
| DEMAT A/C CREDITED ON | 12th Nov, 2021 |
| IPO LISTING DATE | 15th Nov, 2021 |
The PB Fintech Limited IPO begins for subscription from 1st Nov, 2021. The IPO subscription would continue till 3rd Nov, 2021. The allotment status for the shareholders who applied would come on 10th Nov, 2021. The refunds for the ones who did not get allotment would be initiated on 11th Nov, 2021. The DEMAT accounts of shareholders would be credited on 12th Nov, 2021. The listing of the company would be accompanied on 15th Nov, 2021.
Lead Managers
The lead managers are :
- HDFC Bank Limited
- Citigroup Global Markets India Private Limited
- IIFL Securities Limited
- ICICI Securities Limited
- Kotak Mahindra Capital Company Limited
- Jefferies India Private Limited
- Morgan Stanley India Company Private Limited
The minimum lot size for the company is decided at 15 shares. This holding accounts to 14700 Rs.. The maximum lot size is decided at 195 shares. This amounts to Rs. 191100 Hence the company’s final holdings would be set as :
| Shares | Amount | |
| Minimum | 15 shares | 14700 Rs |
| Maximum | 195 shares | 191100 Rs |
OBJECTIVES FOR THE IPO
- The funds can be utilized for General corporate purposes.
- There are multiple purposes behind this IPO. Some of them include expanding their brand awareness for Policybazaar and Paisabazaar. The company also needs to undergo some major Strategic Investments and Acquisitions. PB Fintech also wants to increase its presence outside India. Hence for all uch reasons IPO is to be filed.
COMPANY FINANCIALS
| Particulars (in Million Rs.) | 2020-21 | 2019-20 | 2018-19 |
| ASSETS | 23307 | 15759 | 7514 |
| REVENUE | 9574 | 8555 | 5288 |
| NET PROFIT | (-1502) | (-3040) | (-3468) |
The assets of the company have been increasing continuously and also the revenues are stunning. On the other hand the company hasn’t posted any positive results so far. That’s okay as well as the company has gained high customer exposure lately due to the COVID situation. The benefits are seen clearly in financials with a 50% decrease in losses. Hence one can think long term, for the investments in Thai companies. However in the short term higher returns are not possible.
PROS
- Great asset base and increased revenue over time. Decreasing trend in losses as well.
- The company has benefited from the COVID situation due to its online health insurance plans segment.
CONS
- The company has not yet posted a positive result and is on the verge of getting profitable. If the same doesn’t happen over time the shareholders’ money for the IPO may suffer degradation in value.
PB Fintech Limited IPO APPLICATION PROCESS WITH ZERODHA
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section.
- Click the PB Fintech Limited IPO button and press the BID button.
- Entering the details asked for like UPI ID, Quantity and price.
- Submit the application form for the IPO.
- Visiting the application of UPI for approving the transaction.
Now, applying for an IPO online is possible with most of the Discount and online brokers.
