Policybazaar slips 4% to a new low, stock down 26% from all-time high

Meanwhile, the mandatory one-month lock-in period for anchor investors expired today

Shares of PB Fintech, the parent company of Policybazaar, hit a new low of Rs 1,085.90, down 4 per cent on the BSE in Monday’s intra-day trade as the mandatory one-month lock-in period for anchor investors expired today, December 13, 2021. The stock has fallen below its previous low of Rs 1,120 touched on December 10, 2021, exchange data showed.

With today’s fall, the stock has corrected 26 per cent from its all-time high of Rs 1,470 hit on November 17, 2021. PB Fintech had made a stock market debut on November 15, 2021. The company raised Rs 5,625 crore by issuing shares at price of Rs 980 per share.

PB Fintech had raised up Rs 2,569 crore through allocation to anchor investors, issued 26.22 million equity shares at Rs 980 apiece. Total 33.5 per cent of the total allocation to anchor investors was made to 18 domestic mutual funds through 69 mutual fund schemes. CLICK HERE FOR FULL DETAILS

Policybazaar – the flagship platform –is India’s largest digital insurance marketplace, market share as of FY20 was 93.4 per cent, based on the number of policies sold through online insurance distribution platforms. It has partnered with 48 insurers, and has 51.1 million registered consumers on its platform. It has sold 20.7 million policies on its platform and has 10 million unique transacting customers.

PB Fintech is now aiming towards the expansion of its customer base and the under penetration of the insurance industry provides it a positive outlook in the future. The issue was valued at 46.3x FY22 Mcap/Sales on a post issue and annualized basis, which saw expensive compared to global peers.

“The issue is likely to attract investors interest given its leadership position in both digital insurance/consumer credit marketplace and customer centric approach. Also losses are reducing at Policybazaar while Paisabazaar has turned profitable. In the current environment, market is liking such niche emerging platform stories, which is well placed to tap the high growth digital/online penetration in insurance/consumer credit market,” Motilal Oswal Financial Services had said in IPO note. The brokerage firm had recommended the issue to subscribe from listing gains perspective.