PB Fintech slips as anchor lock-in period ends

PB Fintech fell 3.53% to Rs 1,093 as the mandatory one-month lock-in of anchor investors expired for the stock today, 13 December 2021.

Anchor investors are marquee institutional investors who are allotted shares in a company ahead of its initial public offer (IPO).

Ahead of the IPO, PB Fintech on 29 October 2021 finalized allocation of 2,62,18,079 equity shares to anchor investors at an allocation price of Rs 980 per share, aggregating to Rs 2,569.37 crore.

Shares of PB Fintech hit 52-week low of Rs 1,087.85 in intraday today on BSE. The counter is down 25.65% from its 52-week high of Rs 1,470 posted on 17 November 2021.

The IPO consisted of a fresh issue to raise Rs 3,750 crore and an offer for sale of shares worth Rs 1,959.72 crore by existing shareholders.

The scrip was listed on 15 November 2021 at Rs 1150, a premium of 17.35% to the issue price of Rs 980. The initial public offer (IPO) of PB Fintech received was subscribed 16.58 times. The issue opened for bidding on 1 November and it closed on 3 November. The price band of the IPO was fixed at Rs 940-980 per share.

The company aims to utilize Rs 1500 crore from the net proceeds of the issue for enhancing visibility and awareness of brands, including but not limited to 'Policybazaar' and 'Paisabazaar'. The company wants to utilize Rs 375 crore for pursuing new opportunities to expand its consumer base including offline presence, Rs 600 crore for strategic investments and acquisitions and Rs 375 crore for expanding presence outside India.

PB Fintech, owner of Policybazaar and Paisabazaar platforms, 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 reported a net loss of Rs 110.84 crore and sales of Rs 237.73 crore in the quarter ended on 30 June 2021.

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