SoftBank-backed Policybazaar rises 27% in India market debut (updated)

Sigachi Industries

15/11/2021 07:13

(Updates with analyst's comment, background)
    By Sethuraman N R
    BENGALURU, Nov 15 (Reuters) - PB Fintech Ltd  PBFI.NS , the
SoftBank-backed parent of online insurance aggregator
Policybazaar, rose as much as 27% in its market debut on Monday,
with investors betting on an under-penetrated insurance market
in the country.
    Shares of the company opened 17% higher than the IPO
(initial public offering) price of 980 rupees apiece, with about
28 million shares changing hands in morning trade.
    The IPO, which included a fresh issue of 37.5 billion rupees
($504.44 million), was oversubscribed nearly 17 times in
early-November. SoftBank unit SVF Python II (Cayman) Ltd sold
shares worth 18.75 billion rupees in the offering.
    "The insurance industry as well as the online market is
under-penetrated and the company has a strong market share. We
are anticipating growth in the online insurance segment and the
company is expected to benefit," said Rajnath Yadav, Senior
Research Analyst, Choice Broking.
    Life insurance penetration among India's population stood at
2.82% in 2019, compared with 2.15% in 2001, the latest annual
report from the Insurance Regulatory and Development Authority
showed.  urn:newsml:reuters.com:*:nL3N2NQ312
    Launched in 2008, Policybazaar is an online platform for
customers and insurer partners to buy and sell products. In its
prospectus, PB Fintech had said it would use the proceeds of the
IPO to build its brand, develop an offline presence, and make
investments and acquisitions.
    Along with Policybazaar, refined wood pulp maker Sigachi
Industries  SIGC.NS  and decorative aesthetics products maker
SJS Enterprises also made their market debuts. While Sigachi
rose 267%, SJS was down 1%.
    Several Indian startups like food-delivery firm Zomato
 ZOMT.NS  and cosmetics-to-fashion platform Nykaa  FSNE.BO  have
tapped capital markets recently and witnessed stellar debuts.
    Ant Group-backed  688688.SS  Indian fintech firm Paytm will
list on Nov. 18 after the $2.5 billion IPO, the country's
largest, was oversubscribed just 1.89 times last week. Other
firms due to go public soon include hotel aggregator Oyo and
logistics provider Delhivery.


($1 = 74.3400 Indian rupees)

 (Reporting by Nallur Sethuraman in Bengaluru; Editing by
Shounak Dasgupta and Uttaresh.V)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))