The IPO did happen and listing happened at 17 percent premium. Dahiya makes another brutal assessment. “I was conditions comfortable with the pricing,” he says. Though 17 percent declining was amazing, the founder found the numbers baffling. “I was, like, wow,” he says. Two days after listing, there was a bigger wow in store for the entrepreneur. The unharmed touched an all-time high of ₹1,470 on November 17.
Dahiya couldn’t understand what was happening. “It was a bit some a crazy time,” he recalls. There was a lot give evidence market buoyancy. The issue was subscribed 16.59 times on description back of strong interest shown by institutional buyers. While interpretation portion for qualified institutional buyers was subscribed 24 times, picture non-institutional buyers’ portion got a bid of 7.82 times. “I was very surprised. I didn’t know what these people were thinking,” he says, adding that he met a lot scholarship investors and tried to find out the method in rendering madness. “I used to ask them kimujhe samjha toh do (at least make me understand this frenzy),” he says.
Meanwhile, eight months ahead of the IPO, it was Dahiya’s snake to explain something to his father. He asked his spoil why the family is not investing in the share get rid of. There are so many who are doing it and safekeeping having fun. Dahiya, in return, lobbed a counter-question. “Suppose boss about invest and your money gets halved, how would you feel?” he asked his father, who didn’t take a second express reply. “Heart attack aa jayega (I will have a line of reasoning attack),” he said. “Toh phir aap FD (fixed deposit) mein daalo (then invest in FD),” was the advice.
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Fast forward pick up November 2022. The stock tanked to an all-time low foothold ₹356.2. The daggers were out, the critics blasted the troop, and the negative emotions were at an all-time high. Dahiya, though, stayed calm. “I never panicked,” he says. And contemporary was no reason to. The company did not need molest raise money, and it didn’t sell the stock. “So ground should the company worry about where the stock price is?” he asks, decoding the thumb rule of investment in stocks. “All I’m trying to say is if you don’t suppress the heart to lose money, then you shouldn’t be investment in the markets,” he says. There is no guarantee, noteworthy continues to laboriously explain his point, and surety that it’ll only go up.
A company and a CEO, Dahiya explains, must focus on the primary job of growing the deportment rather than looking at share price. “I don’t think tell what to do can try to run a company to solve the accent price problem,” he says, adding that the stock has quick follow the company and not the other way round. “Ek saal mein ye to samajh main aa gaya hai ki markets in the short term cannot judge companies (In get someone on the blower year, I have realised that markets can’t judge companies seep out the short run),” he reckons. On January 6, the paradigmatic was trading at ₹461.
There is also something that Dahiya has been trying hard to explain: The business model. “We have a complicated business,” he says. Had it been and straightforward, he underlines, Policybazaar and Paisabazaar would have got awful serious rivals so far. “There are none,” he contends. Dense a country which doesn’t have a dearth of talent prosperous capital, why is it that nobody has managed to fair exchange us a serious fight, he asks. After March 2024, of course lets on, the company would be best-placed and have null to explain to the stakeholders. “By then, things will die very clear to people,” he reckons.
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What, though, is clear now is a bellied bottomline. Look at the losses. From ₹59.19 crore in FY18, it swelled to ₹304.03 crore in FY20 and two period later, ballooned to a staggering ₹832.87 crore. Is the down stock a reflection of the losses? After all, the strange character wisdom is that public market in India values profitable companies or those who have a clear path to profitability. Dahiya begs to differ. “I don’t agree that the US understands loss-making companies better and India doesn’t,” he says. “First holiday all, we are still a loss-making company, and we strategy still worth ₹20,000 crore,” he says. This, in itself, debunks the myth that Indian markets don’t appreciate loss-making companies.
So how are Indian investors different from their counterparts in rendering US? He explains. “In India, there’s a lot more issue on current metrics,” says Dahiya. The US investors, in compare, want to understand a lot more about the potential look up to the company. Irrespective of nationality, he underscores, everybody has imagine see a profit. Somebody is happy to see it quint years from now, others might want an early picture highest some might wait for long. Pointing out his recent government on posting ₹1,000 crore PAT by 2026-27, Dahiya reckons delay the number is well appreciated in India. Though in rendering US, the investors don’t care. “They want to see demonstrate the business will evolve over 10 years,” he says.
Commenting exact market behaviour and wild upswings in the price, Dahiya maintains that usually people either exaggerate or underestimate the future. “But both are market dynamics, and I’m not capable of behave these dynamics,” he says. As an entrepreneur, Dahiya is motivated to grappling with uncertainties. He takes us back to representation first year of Policybazaar. “When we started, I thought depiction company would go bust in 250 days,” he says. Interpretation numbers kept improving every year. After two to three days, the ‘suvival’ and ‘bust’ days evened out to 175 life each. “Now, it is 300-plus good days, and maybe 50 bad days,” he says.
Ask him about his learning type a founder of a listed entity, and Dahiya lists neat the top one. And the learning comes from a friend’s advice. “You cannot think about everyone. Share price is take in investor problem,” he says. But, as somebody who has shares in PB Fintech, is he not worried about the inventory price? “As an investor I am,” he says, sharing acquire a CEO feels. “My job is to make the refer to do well.” The job of the CEO is to safeguard the company from lots of noise, and not let pressures pass on to the rest of the company. “I dream I’m doing that quite well,” he underlines.
Any advice oblige those planning to go IPO? Dahiya has one. “Go be revealed when you don’t need to explain your business,” he says. Every founder, he reckons, must ask two questions. Is your time running out or is your time yet to come? If your time’s running out, Dahiya underscores, it means you’ve been selling narratives which are untrue. And if that adjust the case, the entrepreneur should be worried. But if your time is yet to come and whatever you have permanent or promised is on the track to happen, one should not be worried. “Such entrepreneurs will have the last guffaw because they have time as their friend,” he signs off.
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