The public offer received bids for 18.3 million shares against 34.5 million on offer.
The retail investors’ portion was fully subscribed on Monday, while a portion set aside for non-institutional investors was subscribed 6%. The qualified institutional buyers’ segment was subscribed 56%. Policybazaar aims to raise Rs 5,710 crore, and the IPO comprises a fresh issue of Rs 3,750 crore and an offer-for-sale of Rs 1,960 crore.
The IPO will close on November 3.
It has set a price band of Rs 940-Rs 980 per share. The firm is looking to list at a valuation of $6.15 billion.
Analysts are divided on the asking valuations. Reliance Securities said the IPO is valued at 22.1x FY21 book value and 46x on market cap to FY21 sales. According to Amarjeet Maurya of Angel One, the post-issue FY2021 EV/sales ratio works out 47.6 times, which is high, considering its historical performance in terms of the bottom line.
The SoftBank-backed startup raised over Rs 2,569 crore from 155 anchor investors on Friday. Anchor investors include leading insurance firms such as HDFC Life, ICICI Prudential, Bajaj Allianz Life, SBI General Insurance, and Max Life Insurance.
The company will utilize net proceeds from the fresh issue to enhance visibility and awareness of brands, find new opportunities to expand consumer base, and expand its presence outside India.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.