PB Fintech Policybazaar IPO - Information Note

_{Data Source: IPO Filings}

Here are some of the key points about the PB Fintech business model
 

1. As of Mar-21, Policybazaar has 4.80 crore registered customers and has sold over 1.90 crore policies digitally

2. In the financial year FY21 alone, the total number of visits on the Policybazaar website stood at 12.65 crore making the property extremely valuable

3. While Policybazaar has a 90% share of the digital insurance market, Paisabazaar has 51% of the digital consumer credit market place

4. Between them, Policybazaar and Paisabazaar have 51 insurance partners and 54 lending partners, opening up vistas for cross selling

5. The model is capital light, efficient and being digital, it is substantially scalable in a short span of time

6. The Indian insurance opportunity in terms of premium amount is expected to grow from $100 billion to $500 billion by 2030. As of now digital is just 1% of insurance sales, opening a world of opportunity for Policybazaar.
 

Check: 7 Things to know about Policybazaar IPO
 

Structure of the PB Fintech (Policybazaar and Paisabazaar) IPO
 

The IPO will be a combination of a fresh issue and an offer for sale. Here is a gist of the IPO offer of the company.

1. The fresh issue component will entail the issue of 3.826 crore shares and at the peak price band of Rs.980 per share, the fresh issue amount will be Rs.3,750 crore. 

2. The OFS component will comprise of the issue of 1.913 crore shares and at the peak price band of Rs.980, the OFS value would be Rs.1,875 crore resulting in a total IPO issue size of Rs.5,625 crore.

3. While Softbank of Japan, an early backer of PB Fintech, will be the biggest seller in the OFS, the promoter family consisting of Yashish Dahiya and Shikha Dahiya will also be participating in the OFS.

At the upper end of the price band, PB Fintech with its combined properties of Policybazaar and Paisabazaar will be valued at Rs.44,051 crore.

Financials of PB Fintech (Policybazaar and Paisabazaar)