PB Fintech gains as Softbank reduces stake by half in a block deal - Moneycontrol

Currently, SoftBank holds around a 10 percent stake in Policybazaar

Nearly 2.28 crore shares, aggregating to 5.1 percent equity, of PB Fintech changed hands in two block trades on December 2. While the buyer and sellers were not known immediately, it was earlier reported that SoftBank was looking to offload 5 percent stake in the parent company of Policybazaar via a block deal.

Currently, SoftBank holds around a 10 percent stake in Policybazaar. Hence, post the deal, its stake will be reduced to 5 percent.

Follow our live blog for all the market action

At 9:20 am, the stock was quoting at Rs 479.35 apiece on the National Stock Exchange, up by 4 percent. While the stock has gained 23 percent in the last one month, it is down 64 percent since listing.

Reportedly, the stake offloaded was worth Rs 1,000 crore. The base price for the block deal was Rs 440 per share.

According to PB Fintech's RHP, Softbank's SVF Python II (Cayman) had acquired stake at Rs 290 per share. That indicates a 51 percent return on investment. Softbank also holds stake via SVF India Holdings (Cayman) Limited, whose cost of acquisition is not known.

On November 11, after PB Fintech’s pre-IPO lock-in expiry, Tiger Global Eight Holdings sold 76.13 lakh shares at an average price of Rs 374.09 per share, and another 32.84 lakh shares at an average price of Rs 388.34 per share. Internet Fund III Pte Ltd also sold 51.59 lakh shares at an average price of Rs 375.11 per share.

CLSA recently initiated coverage on the stock with a Buy rating and target price of Rs 600 apiece. “We expect more than 10 percent compounded annual growth rate (CAGR) in the broader insurance industry over 15 years and see PB Fintech as a key beneficiary of the growing share of online insurance distribution,” it noted.

In Q2, the company’s consolidated loss narrowed to Rs 186.63 crore compared to Rs 204.44 crore loss registered in the same quarter last year. Its revenue from operations for the period jumped 105.11 percent YoY to Rs 573.47 crore, led by strong growth in insurance premiums, credit disbursal and operating revenue.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​​​

Adblock test (Why?)

PB Fintech gains as Softbank reduces stake by half in a block deal - Moneycontrol
Read More