PB Fintech IPO: PolicyBazaar IPO allotment status is public now and lucky bidders are expected to get shares of the PB Fintech credited in their Demat Account on 12th November 2021. In fact, bidders and market observers are eagerly waiting for the PB Fintech IPO listing date 15th November 2021 as well. After finalisation of share allotment process, grey market is also signaling about the expected listing of the public issue. As per the market observers, PolicyBazaar shares are available at premium of ₹55 in the grey market today.
PB Fintech IPO GMP
According to market observers, PB Fintech IPO grey market premium (GMP) today is ₹55, which is ₹13 higher from its yesterday’s grey market premium of ₹42. Market observers said that after nosediving from ₹150 levels to around ₹40 in last one week; this is for the first time when PB Fintech grey market price has surged. They said that the rise is noticeable as it has taken place despite sideways trend with weak bias in the market. They said that recent market sentiment also played a vital role in performance of the PolicyBazaar shares in the grey market.
What this GMP mean
Market observers said that grey market premium is nothing but listing gain expected by the grey market. So, PB Fintech IPO GMP today at ₹55 means grey market is expecting this public issue to list at ₹1035 ( ₹980 + ₹55), around 5 per cent higher from its price band of ₹940 to ₹980 per equity share.
However, stock market observers maintained that GMP is not an ideal indicator of an IPO’s fate. They advised investors to look at the financials of the company and said that balance sheet of the company reflects exact picture of the business.
Speaking on the fundamentals of PolicyBazaar; Astha Jain, Research Analyst at Hem Securities said, “Company is bringing the issue at price band of ₹940 to 980 per share at p/s multiple of 23x & 17x on FY23E & FY24E. Company has created Consumer-friendly brands offering wide choice, transparency and convenience. Company being collaborative partner for Insurer and Lending Partners has high renewal rates providing clear visibility into future business and delivering superior economics. Company also derives benefits from economies of segmentation with low operating costs and capital requirements.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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