Policybazaar gains 23% on debut; Sigachi soars 3.7x

At the last closing price, Policybazaar parent PB Fintech was valued at Rs 54,000 crore. The company has raised Rs 3,750 crore in fresh capital in its IPO

Shares of PB Fintech, the company that operates online insurance marketplace Policybazaar, rose 23 per cent during their stock market debut on Monday. The company joined peers in the startup space Zomato and Nykaa to see a jump in share price during the first day of trade.

Policybazaar is a web aggregator where consumers can compare insurance products of various companies and buy them. At the last closing price, PB Fintech is valued at around Rs 54,000 crore. The company has raised Rs 3,750 crore in fresh capital in its IPO.  The issue proceeds will be used to enhance its brand visibility and expand its consumer base.

Softbank-backed PB Fintech’s trailing 12-month (ending June 2021) sales were about Rs 950 crore. Its stock currently quotes at 57 times its sales. The company had reported a loss of Rs 150 crore in FY21.

Meanwhile, little-known firm Sigachi Industries saw its stock price jump 3.7 times over its IPO price. The company surpassed Paras Defence’s record of highest-ever gain on listing day. Shares of Paras Defence had gained 2.85 times on its first trading day on October 1.

Meanwhile, SJS Enterprises joined only a handful of companies to see their stock price dip below the issue price on debut. The company’s stock price ended 6 per cent below its IPO price.

The IPO of all three companies had closed on November 3. PB Fintech’s IPO had garnered 16.6 times subscription, Sigachi’s IPO was subscribed 71 times and SJS Enterprises’ offering had just about managed to scrape through.

According to Bloomberg, this is the busiest week in over a decade for listings. IPOs that have cumulatively raised close to Rs 25,000 crore ($3.3 billion) will make their stock market debuts. The biggest of the lot Paytm, which has mopped up Rs 18,300 crore, will list on Thursday.