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PB Fintech Limited

All that you should know about the Company before applying for the IPO.

November 01, 2021
IPo-Aditya Birla Sunlife

The public issue of equity shares of PB Fintech Limited will open for subscription on November 01, 2021 and closes on November 03, 2021 It is expected to list on the stock exchanges on November 15, 2021 What does the company do? Why is the company going public? Who are its key competitors? Its key strengths, and lot more. Here’s everything that you want to know about the company to analysis the IPO.

Company Profile

The Company owns and operates India’s largest online platform for insurance (Policybazaar) and lending products (Paisabazaar). The Company operates in the large and highly under penetrated online insurance and lending markets.

Policybazaar, launched in 2008, offers insurance products of 48 Insurers. In Fiscal 2020, Policybazaar was India’s largest digital insurance marketplace among all online insurance distributors with 93.4% market share, based on number of policies sold (approx. 5.3 million policies). It also constituted 65.3% of all digital insurance sales in India by number of policies sold (including online sales done directly by insurance companies and by insurance distributors). Policybazaar runs on an asset-light capital strategy and do not underwrite any insurance or retain any credit risk on its books.

Paisabazaar, launched in 2014, is an independent digital lending platform that enables Consumers to compare, choose and apply for personal credit products. It has established 56 partnerships with large banks, NBFCs, and fintechs. Paisabazaar was India’s largest digital consumer credit marketplace with a 53.7% market share, based on disbursals in Fiscal 2021.

The Company generates revenue from the following sources:

  • Policybazaar Business – Insurance commission that it receives from its Insurer Partners, and additional services that it provides to Insurer Partners such as telemarketing and other services relating to sales and post-sales services, account management, premium collection and various other services.
  • Paisabazaar Business – Commission that it receive from its Lending Partners, credit advisory and related services that the Company provides to its Consumers or Lending Partners, and marketing services that it provides to financial services partners and other third parties
  • From providing online marketing, consulting and technology services to Insurer and Lending Partners.

Who are the Promoters of the Company?

The company is professionally managed and does not have an identifiable promoter.

Positives about the Company

  • Consumer-friendly brands offering wide choice, transparency and convenience
  • Proprietary Technology, Data and Intelligence Stack
  • Collaborative partner for Insurer and Lending Partners.
  • The company’s scale giving it self-reinforcing flywheels and strong network effects.
  • High renewal rates providing clear visibility into future business and delivering superior economics.
  • Benefits from economies of segmentation.
  • Low operating costs and capital requirements.
  • Founders with clarity of purpose backed by experienced management

Who are its key competitors?

There are no listed peers in India.

Why is the Company going public?

Given below are the objectives of the Company –

  • Enhancing visibility and awareness of it’s brands, including but not limited to Policybazaar and Paisabazaar
  • New opportunities to expand Consumer base and offline presence
  • Strategic investments and acquisitions
  • Expanding presence outside India
  • General corporate purposes

The Offer comprises a Fresh Issue by the company and an Offer for Sale by the selling shareholders. The company will not receive any proceeds from the Offer for Sale.

IPO Details

IPO Size ₹ 5709.72 Crore*
Offer Mix ₹ 3750 Crore + Offer For Sale ₹ 1959.72* Crore
Price Band ₹ 940 – ₹ 980
Lot Size 15 Shares (& in multiples thereof)
Face Value ₹ 2
Application Amount Min. ₹ 14700 (1 lot) | Max. ₹ 191100 (13 lots) [at upper price band]
Listing on NSE & BSE
Registrar Link Intime India Private Limited
Cut-off time for UPI Mandate Confirmation 08-Nov-2021 (up to 12:00 PM)
* at upper price band

Category Wise Availability*

QIB ₹ 4282.29 Crore
(75% of the Issue Size)
NIB ₹ 856.46 Crore
(15% of the Issue Size)
Retail ₹ 570.97 Crore
(10% of the Issue Size)
* at upper price band

Indicative Issue Timeline

Activity Date
IPO Opens November 01, 2021
IPO Closes November 03, 2021
Finalization of the basis of allotment November 10, 2021
Unblocking of funds / Initiation of refunds November 11, 2021
Credit of equity shares to Demat accounts November 12, 2021
Listing of equity shares November 15, 2021
Source: Company RHP
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