The shares of India’s leading online insurance and lending product aggregator firm declined 3.5 percent to ₹1,293.55 per share after the company CEO and Vice-chairman planned to sell a combined stake of 1.86%.
At 1:50 p.m., PB Fintech Ltd. shares were trading at ₹1,321 apiece, down 1.46 percent on the National Stock Exchange, and the company has a market capitalization of ₹59,651 crores.
According to a company’s exchange filing, Mr. Yashish Dahiya, the Chairman and CEO, and Mr. Alok Bansal, the Vice Chairman and Whole-time Director, have expressed their intention to sell a significant number of equity shares. Mr. Dahiya plans to sell up to 5,400,000 shares.
while Mr. Bansal intends to sell up to 2,970,578 shares through bulk or block deals on stock exchanges. A substantial portion of the proceeds from this sale is earmarked for tax payments related to current and future ESOP exercises.
Post-sale, Mr. Yashish Dahiya will retain a 4.83% stake, and Mr. Alok Bansal will hold a 1.63% stake in PB Fintech on a fully diluted basis.
Currently, the two executives collectively own a 6.3% stake in the company, with Mr. Dahiya and Mr. Bansal holding 4.63% and 1.67%, respectively.
The shares will be sold at a floor price of ₹1,258 per share, representing a 6% discount to the closing price of ₹1,338.25 per share on May 16, 2024, on the BSE. This transaction is estimated to have a total value of approximately ₹1,053 crore (about $126 million), as reported by Mint.
PB Fintech shares gained 65 percent in the last six months and 108 percent in the last 12 months.
PB Fintech Ltd, popularly known as Policy Bazar, is India’s largest online platform for insurance and lending products through its flagship brands – Policybazaar and Paisabazaar, through which they provide convenient access to insurance, credit, and other financial products.
In Q4FY24, PB Fintech Ltd saw a substantial 25 percent year-on-year increase in operational revenue, rising from ₹869 crore to ₹1,089 crore. Concurrently, the company experienced a notable turnaround in net profit, transitioning from a loss of ₹9.34 crore to a profit of ₹60.19 crore during the same period.
Written by Omkar Chitnis
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