Tag: pb fintech

PB Fintech arm invests ₹10.8 crore more in Visit Health, holds minority stake

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Docprime, a fully-owned subsidiary of PB Fintech, has made a further investment of over ₹10.8 crore in healthcare and wellness services provider Visit Health (VHPL) for a minority stake.

The board of directors of PB Fintech approved the proposal at a meeting held on Tuesday, the company said.

The board has approved further investment of over ₹10 crore by Docprime Technologies in Visit Health, PB Fintech said in a regulatory filing. In lieu, VHPL will issue 1,44,511 compulsorily convertible debentures (CCDs) of ₹748 each to Docprime.

“Docprime is making further investment in Visit Health to acquire a minority stake as part of strategic investments. As VHPL is an associate company, it is related party of the company. The transaction is done on the basis of a valuation report obtained and is at arm’s length,” PB Fintech said.

Docprime, VHPL and others had entered into a share purchase agreement on September 10, 2021 for this acquisition for a cash consideration, expected to be completed within six months.

The shareholding of Docprime stands at 30.46 per cent on a fully diluted basis.

Firm’s services

Visit Health is engaged in the business of providing healthcare and wellness through website and mobile application. It also provides access to medical services such as diagnostics, OPD, pharmacy through its network partners, and health risk assessment to the subscribers. The company had a turnover of ₹8.91 crore in FY21.

Besides, the board of directors of PB Fintech also approved the list of eligible employees of the company and its subsidiaries to whom 24,32,500 stock options and 1,54,94,500 stock options would be vested on December 1, 2021.

Shares of recently-listed PB Fintech closed at ₹1,214.20 a piece on BSE, down 1.18 per cent from the previous close.

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Shares of PB Fintech likely to see limited upside in near term, says JM Financial, BFSI News, ET BFSI

Personal Finance

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PB Fintech, the parent company of PolicyBazaar, made a positive stock market debut with a 17.35% gain on Monday. The listing pop came as a positive surprise to many experts and analysts, however, JM Financial Services expects limited scope for further gains in the stock.

The brokerage has set a price target of Rs 1,270, which implies a near 5 per cent downside from the current market price. “We initiate coverage with a ‘hold’ rating, solely due to premium valuations with significant upside risks in our ‘bull’ scenario that can drive share price to over Rs 2,200 by December 2024,” it said.

Though the brokerage firm sees limited near-term upside against CMP post the strong listing, they reckon there is a likely path for PB Fintech to grow to a valuation of $13.5 billion over the next couple of years against $7.3 billion currently. This is only if few incremental levers fall into place, which are unlikely in the very near-term, the brokerage said.

These levers consist of digital penetration reaching 5.5 per cent against 4.5 per cent.

Shares of PB Fintech likely to see limited upside in near term, says JM Financial

“Policybazaar is the dominant market leader in a large and growing industry with strong tailwinds such as increasing digital penetration, rising disposable income and insurance awareness. We do believe Policybazaar will be in the driving seat in enhancing insurance penetration in India,” JM Financial said

The brokerage firm is of the strong opinion that the company should continue deepening scale moats in light of new-found competition emerging from insurers’ direct channels and cross-sell by fin-tech players like PhonePe and Paytm.

JM Financial expects PB Fintech, PolicyBazaar’s parent, to grow revenues by 31 per cent annually over the next 10 years.

“While we expect slight market share loss in online distribution due to insurers’ investment in direct channel and newer competition, this loss will be aptly compensated by the company’s growth in physical distribution” it added.



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PB Fintech plans to set up offline physical centres to complement online channel

Banking & Finance

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IPO-bound PB Fintech, an online financial services marketplace focussed on insurance, plans to open small management offices as part of its efforts to improve its market share and make its online model even more successful, Yashish Dahiya, Chairman and CEO, has said.

“The objective will be to raise conversion rates on online customers. Our business model is not that of setting up a branch. We are not setting up branches in high footfall areas. We are not setting up retail stores. They are going to be small service offices and management offices that will handhold customers at their drawing rooms or their office canteens,” Dahiya told BusinessLine.

Strategic move

He also made it clear that this should not be seen as a strategic shift for the digital company. “We will continue to acquire customers through website and app. But these are customers that need some hand holding. So far we provided that from call centre. Now, we will have our people on the ground do it from the physical centres. If we do not do this, in five years time our premium will be lot lower than if we were to do this. From overall profitability perspective, it will be margin accretive,” he said.

Alok Bansal

 

Alok Bansal, Wholetime Director & CFO, said that having a local person would give online customer added comfort that one is talking to a local agent in their own lingo. “They would feel that I have gone to the website and I also get local support enhancing what I got online,” he noted.

In financial year 2020-21, Policybazaar, which is India’s largest digital insurance marketplace, clocked insurance premium of ₹4,700 crore (new and renewals) out of its platform.

₹5,710-cr IPO on November 1

PB Fintech, which owns Policybazaar and digital consumer credit marketplace Paisabazaar, is launching its ₹5,710-crore initial public offering (IPO) on November 1.

Meanwhile, asked as to which of the two— Policybazaar or Paisabazaar— will be the main growth driver for PB Fintech in the coming years, Dahiya said that he would not like to compare the two and added that both will have their spaces.

Scaling up

Dahiya said that company’s efforts in focussing on corporates (including SMEs), points of sales Presence and physical presence is expected to help it scale up business in the coming days.

On international expansion, he said that the company has now got a presence in Dubai and sees lot of potential to grow in UAE. Going forward, one may even look at entering other geographies including Europe and South East Asia, he added.

Dahiya also said that PB Fintech may in the coming days even look at setting up investment platform for mutual funds, but quickly noted that no specific decision has been taken by its Board on this front.

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ESAF Small Finance Bank, Anand Rathi Wealth among 7 cos to get Sebi’s nod for IPO, BFSI News, ET BFSI

Personal Finance

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New Delhi, As many as seven companies, including ESAF Small Finance Bank, Sapphire Foods India and Anand Rathi Wealth, have received capital markets regulator Sebi‘s nod to raise funds through initial public offerings (IPOs). In addition, PB Fintech, which operates an online insurance platform Policybazaar and credit comparison portal Paisabazaar, Paytm‘s parent firm One97 Communications, life sciences company Tarsons Products and HP Adhesives too received Sebi’s clearance to float their IPOs.

These companies, which filed their draft papers with Sebi between July and August, obtained the regulator’s observations during October 18-22, an update with Sebi showed on Monday.

In Sebi’s parlance, the issuance of observation is equivalent to the regulator’s approval.

ESAF Small Finance Bank’s Rs 997.78-crore public issue comprises a fresh issue of equity shares worth Rs 800 crore and an offer for sale of Rs 197.78 crore by existing shareholders, according to draft red herring prospectus (DRHP).

Under the offer for sale, the promoter will be selling shares worth Rs 150 crore, PNB MetLife would offload shares to the tune of Rs 21.33 crore, Bajaj Allianz Life will offer shares of Rs 17.46 crore, PI Ventures will sell Rs 8.73 crore worth shares and John Chakola will offer shares worth Rs 26 lakh.

The IPO of Sapphire Foods India Ltd, which operates KFC and Pizza Hut outlets, will be entirely an offer of sale (OFS) of 17,569,941 equity shares by promoters and existing shareholders.

As a part of the OFS, QSR Management Trust will sell 8.50 lakh shares, Sapphire Foods Mauritius Ltd will offload 55.69 lakh shares, WWD Ruby Ltd will divest 48.46 lakh shares and Amethyst will offer 39.62 lakh shares.

In addition, AAJV Investment Trust will sell 80,169 shares, Edelweiss Crossover Opportunities Fund will offload 16.15 lakh shares and Edelweiss Crossover Opportunities Fund-Series II will divest 6.46 lakh shares.

The initial share-sale of Anand Rathi Wealth Ltd, part of Mumbai-based financial services group Anand Rathi, is completely an offer for sale of 1.2 crore equity shares by promoters and existing shareholders.

Those offering shares in the offer for sale are — Anand Rathi Financial Services Limited, Anand Rathi, Pradeep Gupta, Amit Rathi, Priti Gupta, Supriya Rathi, Rawal Family Trust, Jugal Mantri and Feroze Azee.

According to the draft papers, Paytm plans to raise Rs 8,300 crore through fresh issue of equity shares and another Rs 8,300 crore through the offer-for-sale route.

Paytm founder, managing director and chief executive Vijay Shekhar Sharma and Alibaba group firms will dilute some of their stake in the proposed offer-for-sale.

In addition, investors selling stake include Antfin (Netherlands) Holding BV, Alibaba.Com Singapore E-Commerce Private Ltd, Elevation Capital V FII Holdings Ltd, Elevation Capital V Ltd, SAIF III Mauritius Company Ltd, SAIF Partners India IV Ltd, SVF Panther (Cayman) Ltd and BH International Holdings.

The Rs 6,017.50 crore IPO of PB Fintech comprises a fresh issue of Rs 3,750 crore worth of equity shares and an offer for sale of Rs 2,267.50 crore by existing shareholders.

As part of the OFS, SVF Python II (Cayman) will sell shares worth Rs 1,875 crore, Yashish Dahiya will offer shares worth Rs 250 crore and some other selling shareholders will also divest shares.

Tarsons Products’ IPO comprises fresh issuance of equity shares worth Rs 150 crore and an offer for sale of 1.32 crore equity shares by promoters and an investor.

As a part of the OFS, promoters — Sanjive Sehgal will offload up to 3.9 lakh equity shares and Rohan Sehgal will sell up to 3.1 lakh equity shares — and investor Clear Vision Investment Holdings Pte Ltd will divest up to 1.25 crore equity shares.

HP Adhesives’ initial share-sale consists of fresh issuance of 41.40 lakh equity shares and an offer of sale of 4,57,200 equity shares by promoter Anjana Haresh Motwani.

The company manufactures a wide range of consumer adhesives and sealants products such as PVC, solvent cement, synthetic rubber adhesive, PVA adhesives, silicone sealant, acrylic sealant, gasket shellac, other sealants and PVC pipe lubricant.

The shares of these companies will be listed on the BSE and NSE. PTI SP BAL BAL



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Policybazaar plans IPO to raise up to Rs 6,500 crore, BFSI News, ET BFSI

Personal Finance

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Mumbai: PB Fintech, the parent entity of SoftBank-backed online insurance aggregator Policybazaar has approved a resolution to raise up to Rs 6,500 crore, or $870 million, via an initial public offering (IPO), making it the fifth Indian startup this year to initiate proceedings to hit the public markets.

The Policybazaar IPO is expected to be a mix of a fresh issue of shares and an offer for sale (OFS), wherein existing investors can sell their stakes directly through exchanges, according to the regulatory filings.

According to sources, the company is likely to file a Draft Red Herring Prospectus (DRHP) with markets regulator Securities and Exchange Board of India (Sebi) soon as it eyes going public by December this year.

The online insurance aggregator — like Paytm and Zomato — is also expected to raise a pre-IPO round, which could include a secondary transaction for existing investors to dilute their stakes.

The Gurugram-based firm’s board approved the initial share sale at an extraordinary general meeting that was held on July 5, the regulatory filings showed. The startup has also passed a special resolution to rename as PB Fintech Ltd., converting from private limited to public entity.

A Policybazaar spokesperson didn’t immediately respond to ET’s queries. News website Entrackr was first to report the Policybazaar IPO resolution.

Policybazaar recorded a loss of Rs 218 crore in FY20 against Rs 213 crore in the previous fiscal. The financial results for FY21 are not out yet. The firm recently acquired an insurance broking licence from The Insurance Regulatory and Development Authority of India (IRDAI), which is an upgrade from its status as a web aggregator.

The new licence will allow Policybazaar to set up its physical network while also expanding product and service offerings significantly, which include claims assistance and point-of-sale network.

Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar founded Policybazaar in June 2008. The company’s list of investors includes Japan’s SoftBank Vision Fund, private equity firm True North, Premji Invest, Tiger Global and Temasek, among others.



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