- The IPO of PB Fintech, the parent company of Policy Bazaar will be open from November 01-03.
- The company is offering shares at a price of Rs 940-980 with a target of raising fresh equity capital of Rs 3750.
- The IPO is the biggest and most controversial of the three IPOs to open from November 1.
There are some questions on this IPO when it comes to valuations. Most of Teva’s brokerage firms are advising these startups to stay away from IPOs. Marwari Shares & Finance advised him not to subscribe saying that the company is offering shares at exorbitant price.
The IPO, which will remain open till Wednesday, will raise fresh equity capital of Rs 3,750 crore. Its existing investors, including SoftBank, are targeting Rs 1,900 crore by selling their shares.
Reliance Securities has also increased the offer price. Technology companies like Zomato and Cartrade have been listed recently, and the premium of this stock is even higher. In addition, the policy market is still not profitable. In the long run, the insurance market in India is expected to grow 17.8 percent to ₹ 520 billion by FY30. The company’s future in Teva looks bright, but there is also a lot of competition in this space. The price at which the company is currently offering shares is likely to increase in 2-3 years.
Yesha Shah, Head of Equity Research at Samco Securities, says competition is fierce in the area of operations for PB Fintech. Some big players are removing their products from the platform. The biggest challenge facing PB Fintech is to increase revenue while maintaining its market share. As per his advice, investors who want to invest and take risk in the long term can subscribe to this IPO.
PB Fintech is offering shares at a price of Rs 940-980 with a target valuation of Rs 6.15 billion. However, currently there is no listed company in India that is involved in operations like PB Finance. So that it cannot be compared with anyone else.