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Policybazaar IPO, Should you hold or sell Pb fintech share

 What should you do in PB fintech share? Policybazaar

Policy Bazaar's IPO is going to be listed on the Indian Stock Market on 15th November 2021 on the Set & NSE stock exchanges. The IPO of PB Fintech  got mixed response from the investors and the IPO of PB Fintech was 16. Times subscribed. Now the IPO bidders who have been allotted shares in the IPO of PB Fintech, a question is coming in their mind that they should hold and sell the PB Fintech shares? Should investors who have not received share allotment in the Policy bazaar IPO buy the shares after listing of PB Fintech ? Today in this article we will try to answer all these questions in easy words. For this, let us first see what has been the subscription data of PB Fintech IPO.




PB fintech IPO Subscription Data & Grey market premium of PB Fintech IPO:

Policybazaar IPO had subscribed only 16.59 times which was as per our expectations. Company had raised nearly $6 billion from the Indian market at the higher price band of IPO i.e 980rs per share. Company had received bids of nearly 57.2 crore for PB Fintech IPO equity shares against offered equity shares in size of 3.45 crore. It was not too bad response from investor’s side. As per the grey market premium, PB Fintech share was getting 160rs per share premium before IPO to open into the market but now premium for PB fintech IPO has decreased to 70rs per share and dropped to the price level of 88rs per share which is not good sign for PB fintech IPO bidders.

PB Fintech share hold or sell:

PB Fintech which is a parent company of online selling platform for life insurance, medical insurance, vehicle insurance etc with brand name of  of website PolicyBazaar and other online website platform for finacnial products like home loans, personal loans, credit cards etc is PaisaBazaar. More than 80% or business comes from the commission for selling of insurance and other financial products from the online platform and other business revenues comes from the physicals presence of company branches. In PB Fintech IPO . Company has collaboration with other small companies too those are selling their financial products but from the small company, commission rate is not much. There is no any question on the PB fintech management but the PB Fintech IPO price was too high and nothing much left on table for investors or traders after PB fintech IPO listing.

As per our research PB Fintech Company had reported total revenues of 8,555.63 million in the march 2020 but in the March 2021 Company total revenues bit increased and reach at 9567million. Company reported net loss of (1502) in March 2021 & in June 2021 QTR net loss was (1108). All Data need to consider in million. Therefore after calculation of above data we say that company is overall in loss. Company management commentary is positive for the expansion plans of the company & it is the one of the main reason to launch IPO of PB fintech into the Indian stock market. Company is expected toi use 1490 million for the brand promotion which will comes under the expenses of the company but it will enhance the brand awareness of the company products. PB Fintech Management is also expecting to invest more than Rs.3,740 Million for increasing the offline presence of the Company. PB Fintech has also expansion plans outside of India & More than 3750rs million funds will be used for it. The valuation of PB Fintech share at higher price band looks very expensive. It is better to book profit on listing day of PB fintech share. The second strategy will be try to raise stoploss  of % from the higher IPO price band of PB Fintech means that 1025rs should we the stoploss if IPO of this company opens as per grey  market premium.

 Should you buy PB Fintech share for long term ?

If we do the above mentioned data analysis and trust the company's management on the expansion plan, then the management vision of the company looks good in the long term. But PB fintech share price is looking very expansive in online selling other companies are doing good business in India. Companies such as PhonePe & Paytm have also been selling online financial products for a few years now. That's why the commission is not getting much in the selling of online financial products and the competition has also increased a lot in the market. In India, many people are buying and selling products online, but some people still hesitate to buy insurance policies online and go to the branches of long companies and banks themselves to understand the policies. By doing more, people want to check the details by visiting the official websites of banks and companies. Looking at all these negative factors, then PB Fintech Company may have to face a lot of challenges. Looking at all these factors, we can say that if an investor has been allotted shares of PB Fintech in IPO and he applied for IPO for listing guest, then such investors and traders should be eligible for listing of PB Fintech IPO. If you get profit then you should book. If an investor has a long term point of view, then at least 2 to 3 years investment point of view has to be maintained in PB Fintech shares.

If long term investors want to Invest into the PB Fintech share then It is advisable that try to start accumulate Policybazaar share at lower levels. The fair value of PB fintech share looks around 850rs to 860rs or below.  If we will trust on grey market premium then it is expected that PB Fintech share will list around 1060rs which is again highly over priced for long term investors.

Long term Price targets of PB Fintech share:

As we have already discussed that we are not much bullish on Policybazaar IPO or PB Fintech IPO because of higher valuation & lot of competition into the online financial products selling market. Company management has long term expansion plan which required lot of capital. Funds Raised from this IPO will will used from expansion therefore it is a long term story. If any investor wants to buy PB Fintech share then he/she has to keep patience for the 2 to 3 years point of view. During this long time, PB fintech share price may go down from the IPO price band. It is better wait for the correction into the PB Fintech share at least 10% to 15% from IPO price band the start investment . Otherwise other investment options are available into the market. According to our view it is bit risky investment. But still if any investor want to invest then

long term price target of PB Fintech  is 1150rs+ in 2 to 3 years  but only after correction of the stock price.

New recommendation on PB fintech stock:

All price targets have met in PB Fintech stock and stock price is trading very much higher from our expectation and target price. It is better to book profit in the PB fintech stock. We will update into our website when you should  renter  into PB Fintech stock 

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