Policybazaar IPO - Subscription Day 1

5paisa Research Team 5paisa Research Team 2nd November 2021 - 03:24 pm

The Rs.5,625 crore IPO of PB Fintech (Policybazaar & Paisabazaar), consisting of a fresh issue of Rs.3,750 crore and an offer for sale (OFS) of Rs.1,875 crore, saw a decent response on Day-1. As per the combined bid details put out by the BSE, PB Fintech (Policybazaar & Paisabazaar) IPO was subscribed 0.54X overall, with bulk of the demand coming from the retail segment followed by the QIBs. The issue closes on 03rd November.

As of close of 01st November, out of the 345.12 lakh shares on offer in the IPO, PB Fintech (Policybazaar & Paisabazaar) saw bids for 185.60 lakh shares. This implies an overall subscription of 0.54X. The granular break-up of subscriptions were tilted in favour of retail investors with QIBs participating on the first day of the IPO in a much smaller way. QIB bids and NII bids typically come in only on the last day of the IPO.

PB Fintech (Policybazaar & Paisabazaar) IPO Subscription Day-1

Category	Subscription Status
Qualified Institutional Buyers (QIB)	0.56 Times
Non Institutional Investors (NII)	0.06 Times
Retail Individuals	1.18 Times
Employees	N.A.
Overall	0.54 times

QIB Portion

The QIB portion of the IPO saw 0.56X subscription at the end of Day-1. On 29 October, PB Fintech (Policybazaar & Paisabazaar) did an anchor placement of 2,62,18,079 lakh shares at the upper end of the price band of Rs.980 to 155 anchor investors raising Rs.2,569 crore.

The list of QIB investors including a number of marquee names like Goldman Sachs, Nomura, Blackrock, Morgan Stanley, Canadian Pensions, Fidelity, ADIA, ICICI Pru MF, SBI MF, Axis MF, UTI MF; among others.

The QIB portion (net of anchor allocation as explained above) has a quota of 193.30 lakh shares of which it has got bids for 107.77 lakh shares on Day-1 of the IPO. QIB bids typically get bunched on the last day, but anchor response has been robust and that is good news for the QIB response in the coming days.

HNI / NII Portion

The HNI portion got subscribed 0.06X (getting applications for 5.91 lakh shares against the quota of 91.10 lakh shares). This is a relatively tepid response on Day-1 and this segment normally sees response on the last day. That is because, bulk of the funded applications and corporate applications, come in on the last day, so the actual picture should only get better.

Retail Individuals

The retail portion was subscribed a robust 1.18X at the end of Day-1, showing strong retail appetite. Retail allocation for this IPO is 10% of the offer size. For retail investors; out of the 60.73 lakh shares on offer, valid bids were received for 71.92 lakh shares, which included bids for 59.23 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.940 – Rs980) and will close for subscription on 03rd November 2021.

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