The initial public offering of Policybazaar-owner PB Fintech (PBFL), which also operates Paisa Bazaar, has been oversubscribed three times on November 3, the third and final day of bidding. The offer has received bids for 10.17 crore equity shares against the IPO size of 3.45 crore equity shares.

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Retail investors subscribed over 250 percent to the IPO, and non-institutional subscribers put in bids for 70 percent against their reserved portion. Qualified institutional buyers subscribed to over 400 percent of their reserved portion.

The price band for the offer, which closes on November 3 is Rs 940-980 apiece. Brokerages have recommended buying the IPO given the company's leadership position in its target market.

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Policybazaar is the flagship platform of PB Fintech and is India's largest digital insurance marketplace. In FY20, it had a market share of over 94 percent. It has over 48 partner insurers, over 51 million consumers and over 20 million policies with 10 million unique transacting consumers.

Motilal Oswal Retail Research recommended subscribing to the IPO for listing gains. It said the issue is valued at 46.3 times the FY22 market cap/sales on a post-issue annualised basis. The brokerage said, in comparison with global peers, this valuation is expensive.

But, it said, the issue is likely to attack investors given its leadership position in both digital insurances, consumer credit market, and customer-centric approach.

While Policybazaar is reducing its losses, Paisa Bazaar has turned profitable. And since the market is liking Policybazaar-type niche emerging platform stories, the company is well-placed to tap high growth digital penetration in the insurance and consumer credit market, Motilal Oswal said.

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