Policybazaar tanks 10% as CEO Yashish Dahiya plans 3.77 mn share sale

Yashish Dahiya intends to offload partial stake via bulks deals on the exchanges. He currently holds 24.52 million shares in the company.

Shares of PB Fintech, which operates online insurance broker Policybazaar and loan marketplace Paisabazaar, plunged 10 per cent to Rs 595 on the BSE in Tuesday’s intra-day after Yashish Dahiya, chairman executive and CEO of the company revealed his plan to sell up to 3.77 million equity shares through open market.

“The Company has received an intimation from Mr. Yashish Dahiya, Chairman and CEO of the Company, for an intention to sell up to 3,769,471 equity shares via bulk deals on the stock exchanges,” PB Fintech said in an exchange filing.

The aggregate shareholding of Yashish Dahiya as on March 31, 2022, stood at 19 million (4.23 per cent) and post exercise of 5.5 million ESOPs during May 2022 his aggregate shareholding increased to 24.52 million (5.45 per cent). As the ESOPs are subject to payment of taxes on exercise in addition to the payment of capital gain tax on the sale of shares, the proceeds from the sale of the 3.77 million shares are proposed to be used to make the payment of current and future taxes, the company said. CLICK HERE FOR STATEMENT

Earlier, on February 11, 2022, co-founder Alok Bansal divested 2.85 million shares of PB Fintech for Rs 236 crore through an open market transaction. According to the NSE bulk deal data, Bansal sold shares at an average price of Rs 825 apiece.

PB Fintech came out with its Rs 5,710-crore initial public offering (IPO) in November 2021. The company's co-founders and other shareholders had reduced their stake in the public issue.

At 09:29 am; the stock was trading 8 per cent lower at Rs 604.80, as compared to 0.86 per cent decline in the S&P BSE Sensex. It had hit a record low of Rs 542.30 on May 12, 2022.

In the past six months, the stock has underperformed the market with its stock price halved or down 49 per cent as compared to 4 per cent decline in the S&P BSE Sensex. The stock has corrected 60 per cent from its all-time high of Rs 1,470 hit on November 17, 2021. 

PB Fintech had made its stock market debut on November 15, 2021. The company had issued shares at Rs 980 per share.

Tech outlook

View: Cautious

Support: Rs 580

Bears seem to have gained control over PB Fintech counter as price-to-moving averages' actions, and momentum oscillators are turning sour by the day. The stock's 20-day moving average (DMA) is below its 50-DMA, while 50-DMA is below its 100-DMA, indicating weakness in the stock.

Moreover, the Directional Index (DI), MACD, and slow stochastic indicators are favouring consolidation in the stock. The only supportive indicator is the Relative Strength Indicator (RSI), which is heading towards oversold zone.

Overall, PB Fintech has an immediate support at Rs 580.5, which is its lower end of the Bollinger Band. This will be followed by trendline support of Rs 558.

(With inputs from Nikita Vashisht)