Policy Bazaar Fintech IPO Date, Price, GMP, Review & Details

RatingSubscribe(Aggressive Investors)Issue OfferIssue Opens on Nov 01, 2021Issue Close on Nov 03, 2021Total IPO size (cr) 5,625Fresh issue 3,750Offer For Sale (cr) 1,875Price Band (INR) 940-980Market Lot 15Face Value (INR) 2Retail Allocation 10%Listing On NSE, BSEObjects of the issue ⮚ For enhancing visibility and business expansion ⮚ To expand consumer base including offline presence. ⮚ Strategic investments and acquisitions ⮚ For General corporate purposes.Issue Break-up (%)QIB Portion 75NIB Portion 15Retail Portion 10Indicative TimetableFinalisation of Basis of Allotment 10-11-2021Refunds/Unblocking ASBA Fund 11-11-2021Credit of equity shares to DP A/c 12-11-2021Trading commences 15-11-2021

PB Fintech is India’s largest online platform for insurance and lending products leveraging the power of technology, data and innovation.

It provides convenient access to insurance, credit and other financial products and aims to create awareness amongst Indian households about the financial impact of death, disease and damage. The company launched Policybazaar, its flagship platform, in 2008 to respond to Consumers’ need for more awareness, choice and transparency and create a consumer-pull based, provider-neutral model for insurance distribution.

In 2014, the company launched Paisabazaar with the goal to transform how Indians access personal credit by accentuating ease, convenience and transparency in selecting a variety of personal loans and credit cards.

⮚ In Fiscal 2020, Policybazaar was India’s largest digital insurance marketplace among all online insurance distributors with a 93.4% market share based on the number of policies sold.

⮚ Paisabazaar was India’s largest digital consumer credit marketplace with a 53.7% market share, based on disbursals in Fiscal 2021

⮚ Follows an asset-light capital strategy and do not underwrite any insurance or retain any credit risk on their books. Policybazaar is registered with and regulated by IRDAI as a direct insurance broker.

⮚ The market for insurance products as well as the lending market in India is expected to be more than double by 2030, which represents a meaningful market opportunity for the company.

⮚ Policybazaar offers an information-rich, user-friendly, and tech-driven self-service platform for

pre-purchase research,
purchase, including application, inspection, medical check-up, and payment; and
post-purchase policy management, including claims facilitation, renewals, cancellations, and refunds

Outlook & Valuation

The company had consistent revenue growth in the last 3 years. The company's revenue for FY21 was at Rs 957.4 crore VS Rs 855.56 cr in FY20 while the company has never registered profit.

The company recorded a loss of (150.24) cr in FY21 against a loss of Rs (304.03) cr in FY20. New edge businesses are garnishing investors' interest in India and we have seen many multi-baggers from such kinds of businesses in the USA and China.

PB fintech is the operator of India's largest online platform for insurance and lending products and aiming toward expansion of its offline and customer base. The valuation of the company cannot be ascertained as the company is loss-making while the EV/Sales work out 47.6x.

Eying the positive outlook of the company and under penetration of the insurance industry, we assign a “SUBSCRIBE” only for Aggressive investors.

IPO Note

PB FINTECH IPO (POLICY BAZAAR)

KEY MANAGERIAL PERSONNEL

⮚ Mr Yashish Dahiya is the Chairman, Executive Director and CEO of the Company He holds a bachelor’s degree in technology from IIT, Delhi, a PGDM from IIM, Ahmedabad

⮚ Mr Alok Bansal is a Whole-time Director and CFO of the Company. He was previously associated with Voltas Ltd., GE (India), iGate Global Solutions Ltd, M&M and FE Global Technology Services Pvt. Ltd.

⮚ Ms Kitty Agarwal is a Non-executive Director of the Company. She is currently associated with Info Edge Ventures as a partner and was previously associated with Info Edge Ltd. as head of corporate development.

⮚ Mr Sarbvir Singh is the President of Policybazaar and Non-executive Director of the Company.

⮚ Mr Munish Ravinder Varma is a Non-executive Director of the Company. He currently serves as a managing partner at SoftBank Investment Advisers. He was also associated with Deutsche Bank AG.

⮚ Mr Kaushik Dutta is an Independent Director of the Company He is a fellow member of the Institute of Chartered Accountants of India with over 25 years of experience.

⮚ Ms Veena Vikas Mankar is an Independent Director of the Company. Ms. Mankar started her career with ICICI Limited and has worked with various financial institutions.

⮚ Ms Lilian Jessie Paul is an Independent Director of the Company.

⮚ Mr Nilesh Bhaskar Sathe is an Independent Director of the Company.

⮚ Mr Gopalan Srinivasan is an Independent Director of the Company.

COMPETITIVE STRENGTHS

⮚ Created strong, Consumer-friendly brands offering wide choice, transparency and convenience well-diversified business model.

⮚ Proprietary Technology, Data and Intelligence Stack

⮚ Benefits from economies of segmentation

⮚ Strong network effects for Policybazaar and Paisabazaar platforms.

⮚ High renewal rates provide clear visibility into future business and deliver superior economics.

⮚ Capital efficient model with low operating costs.

⮚ Founders with clarity of purpose backed by experienced management.

KEY CONCERNS

⮚ The company has a history of losses and it anticipates increased expenses in the future.

⮚ The COVID-19 pandemic, or a similar public health threat, could adversely affect their business, financial condition, and results of operations.

⮚ Failure to deal effectively with any fraud perpetrated on our platforms could harm our business.

⮚ Their strategy to expand internationally involves risks that could increase expenses, adversely affect results of operations and require increased time and attention from the management.

⮚ Business is subject to intense competition.

⮚ Failure to maintain brand recognition and reputation will adversely affect business financials.

⮚ The insurance broking business is subject to various laws and regulations.

⮚ Highly dynamic and competitive online fintech industry.

IPO Note

PB FINTECH IPO (POLICY BAZAAR)

COMPARISON WITH LISTED INDUSTRY PEERS

There are no listed companies in India that engage in a business similar to that of the Company. Accordingly, it is not possible to provide an industry comparison in relation to the Company while the EV/Sales work out to be 47.6x.

FINANCIALS (RESTATED CONSOLIDATED)

Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019Equity Share Capital 12.35 11.09 8.77Other Equity 19,904.99 12,647.38 4,894.17Net Worth 19,917.34 12,658.47 4,902.94Total Borrowings -- -- --Revenue from Operations 8,866.62 7,712.97 4,922.45EBITDA (1,597.63) (3,198.92) (2,512.32)Profit Before Tax (1,419.14) (2,948.41) (3,374.30)Net Profit for the year (1,502.42) (3,040.29) (3,468.11)

DISCLAIMER:

^{The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.in Phone: (0731) 6644 241Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.}

Step : 1

Step : 2

Step : 3

Step : 1

Step : 2

Step : 3

SUB - BROKER
DASHBOARD

KYC
DASHBOARD

DOWNLOAD DEALER
SOFTWARE

WEB TRADING

MOBILE TRADING

BACKOFFICE REPORTS

MAIL

KYC DASHBOARD

CRM

BRANCH
BACKOFFICE

SWASTIKA PEOPLE

DOWNLOAD s