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POLICYBAZAAR IPO

  • Writer: Yash Mehta
    Yash Mehta
  • Oct 30, 2021
  • 2 min read


IPO Details:

Price Band: 940-980

Cutoff Price: 980


About Company:


Policybazaar have built India’s largest online platform for insurance and lending products, leveraging the power of technology, data and innovation. Company 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. Through consumer-centric approach, Policybazaar seeks to enable online research based purchases of insurance and lending products and increase transparency, which enables Consumers to make informed choices. Company also facilitates their Insurer and Lending Partners in the financial services industry to innovate and design customised products for Consumers.


Competitive Strengths:

  1. Company has created strong, Consumer-friendly brands offering wide choice, transparency and convenience.

  2. Proprietary Technology, Data and Intelligence Stack.

  3. Collaborative partner for Insurer and Lending Partner.

  4. Their scale gives them unique self-reinforcing flywheels and strong network effects.

  5. High renewal rates providing clear visibility into future business and delivering superior economics.

  6. Benefits from economies of segmentation.

  7. Capital efficient model with low operating costs.


Strategies:

  1. Broaden and deepen consumer reach in India.

  2. Expand our playbook to replicate our platform for SME and corporate clients.

  3. Continue to invest in the brands.

  4. Neo-lending strategy to cover innovation and segment gaps.

  5. Continue to invest in digital and technology infrastructure.

  6. Pursue strategic investments and acquisitions to enhance product and service capabilities.

  7. Pursue international expansions.


Financial Performance:






Revenue is increasing every year for the company and company Net Profit and EPS is also increasing. Still, Policybazaar is not Net Profitable. P/E can't be used as a measure here.


Objects of the Issue:


The Net Proceeds from the Issue are proposed to be utilised in the following manner:

  1. Funding Strategic investments and acquisitions

  2. New opportunities to expand growth initiatives to increase our Consumer base including offline presence

  3. Offer for Sale

Competitors Comparison:

There are no listed commpetitors to Policybazaar.

Based on the networth, Price to Book Value of the company is 18.


Grey Market Premium:


Our view: GMP of the IPO is decent, although company is not profitable. I will apply for this IPO only for listing gains.


Disclaimer: Views are shared for an educational purpose. Please consult your financial advisor or planner before taking any action based on the views or facts shared on this blog.

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