Policy Bazaar IPO | Know whether to invest money in or to avoid investing money
Policy Bazar IPO, whose issuance date is November 1 to November 3. You must be wondering whether to invest in policy market IPOs or not. Policy Bazaar IPO went live today on November 1. in which you can bid. Today we will talk about whether you have to invest money in it or avoid investing money.
Let’s say 10 people have got their policy done. And in that, there is a Policy Bazaar company which has 9 policies. From this, you can guess that the Policy Bazaar is a very big company in the market.
A very large company in the finance sector
When we talk about finance, there are two things in it which are very big and are important in the market.
A very big company of Insurance and Loan which is maintaining its good position in the market is named PB Fintech Limited. This company gives opportunities to traders and investors that you can buy our shares. But why should we buy shares of this company? Let us know in detail.
What does PB Fintech Limited do?
Let us understand this through two sections.
Insurance – Policy Bazaar
The first is insurance, in which the policy market occupies a very large niche. Talking about today, 93.4% of the policy sector is captured by the Policy Bazaar.
Loan – Paisa Bazaar
The money market has captured up to 50.4% of the loan sector. In the loan sector, people take personal loans, car loans, home loans, and credit cards.
First, we will take you through their business model. After that, you will be able to decide whether you want to invest in it or not. Let’s talk about the business model of Policy Bazaar and Paisa Bazaar.
Policy Bazaar business model
This company was launched in 2008 as a comparison website. Earlier this company did not sell much insurance. But if we talk about it today, today it has 51 sellers. who have their own products. All sellers sell products by listing their products on the policy market. In 2008, this company did not start selling policies online. After that gradually he made people aware in the market that they can also buy policies online.
Before 2008, people in India used to buy policies through an agent. After 2008 people started buying policies online. And this company had made a good place in the policy sector at that time. Whether you buy any type of policy like health policy, car policy, and term policy, the earlier agents used to get a commission, so if you buy a policy from the Policy Bazaar, this company also gets a commission. Due to this company is getting regular revenue.
The company first started getting revenue through the website, then in 2015, they launched iOS and mobile applications. Now you can buy any policy through the app.
As you know, getting the policy renewed is the biggest thing for the company. In the beginning, when the company spends a lot on advertising, it brings customers to itself. Even if the company does not make any profit in that first year, it does not make much difference to the company. But when the policy renewal time comes, the company’s revenue also increases, and profits also increase. After adding customers only once, the company makes a profit for several years thereafter.
Paisa Bazaar business model
In today’s time, if you want to take any loan, then instead of waiting in the line of the bank, it seems right to apply for a loan from the internet by taking all the information from the internet. Because now the age of the internet has come. Every company has its own website, on which it shares all the information with its customers. And it has become easy for the customer to get the information about the company.
The company thus managed to carve a niche in the market
Now the most important thing to take a loan is the customer’s CIBIL score. Before 2014, people had to pay money to check their CIBIL scores. At that time the money market company was started in 2014. And he turned this problem of the people into a solution. They had provided a free CIBIL score check facility for the customers on their website. To check the CIBIL score, the customer gives all his details. Such as PAN card, bank statement, address proof, mobile number, etc. So every customer has filled in their information on Paisa Bazaar website to check free CIBIL score.
Talking about today, there are 21.5% million of users who are checking their CIBIL score by going to the Paisa Bazaar’s website. After getting the information of so many people, at least 10% of the people definitely have a good CIBIL score. So this company starts giving offers of credit cards, home loans, or any other loan by contacting those people. The company is providing many services to many such people and earning a lot of money.
Both the business models of this company have been good and profitable. Due to this, the revenue of the company is increasing every year. Let’s talk about the revenue, profit, and assets of the company:
|2019||Rs. 529 Cr|
|2020||Rs. 856 Cr|
|2021||Rs. 957 Cr|
|2019||Rs. -347 Cr|
|2020||Rs. -304 Cr|
|2021||Rs. -150 Cr|
If seen, the revenue of the company is increasing every year and every year the company is booking losses. In this, company expenses can be high, such as advertising, marketing, the salary of employees, etc. But even after booking the losses, you see that the assets of the company are increasing every year. Let’s know how much the property is growing:
|2019||Rs. 751 Cr|
|2020||Rs. 1576 Cr|
|2021||Rs. 2331 Cr|
If the assets are increasing then we can understand that the company definitely has money. We cannot infer that the company is not making any profit just by computing the losses. If we are buying or investing in company shares, we also have a share in the assets of the company.
When the company is listed for an IPO, only the loss is not counted. The company can eliminate losses by reducing its expenses, but despite the loss, the company’s assets are in profit. The revenue of the company is also increasing every year and the business model is also good. Seeing all this, you can think about whether you should invest money in the company or not.
How to apply in Policy Bazaar’s IPO?
Let’s talk about the basic information about the company.
The issue size of the company is रु 6017.5 crores. How will the company use all this money?
First of all, the company is going to spend रु 1500 crores on its branding and visibility like marketing, advertising, etc., so that many more people can join the company.
Also, the monopoly of the company is very good, and online is very strong. And after that, the company wants to expand offline at a cost of रु 375 crores.
The remaining Rs रु 600 crores is expected to be spent on the company’s strategy. Apart from this, this company will buy small companies in the market.
Talking about the company’s price range for investment, their lot size will be 15 (1-13). The investment value range under the retail category will be रु 14,700 to रु 1,91,100. Talking about the Bid Place, you can place your bid from 1st November 2021 to 3rd November 2021. It will be allotted on November 10. Share buyers will be allotted shares by November 10. On November 11, the refund of those who did not get the shares would be started.
The shares in your Demat account will be visible on November 12. These shares will be listed on the exchange on November 15. After that everyone will be able to trade in it. If you want to learn more about Policy Market be sure to subscribe to our push notifications and newsletters. You will be the first to receive notification and email whenever we share more information again. Stay connected with us for the latest updates on the rest of the stock market and cryptocurrencies. Thank you for giving us time. Keep visiting our website so that you can get information about the share market and cryptocurrency.
Read more of our articles. Which will surely increase your knowledge.