SoftBank sells 5.1% stake in Policybazaar

SoftBank on Friday (2 December) sold 5.1% stake worth Rs 1,043 crore of PB Fintech, the parent of Policybazaar, through bulk deal on the NSE.

As per the bulk deal data on the NSE, SVF India Holdings (Cayman) offloaded 2,28,42,424 shares, or 5.08% equity, in the company. The entity is a subsidiary of SoftBank.

The shares were offloaded at an average price of Rs 456.40 each, taking the transaction value to Rs 1,042.52 crore.

Post the latest transaction, SoftBank's shareholding in the company will reduce to 5.08% from 10.16% as on 30 September 2022.

Morgan Stanley Mauritius Company and Societe Generale were among the buyers on Friday.

Morgan Stanley Mauritius Company bought 27,30,000 shares, or 0.61% equity while Societe Generale bought 26,00,000 shares, or 0.58% equity, in PB Fintech. Both the transactions were struck at Rs 456.40 per share.

PB Fintech, the owner of Policybazaar and Paisabazaar platforms, is India's largest online platform for insurance and lending products.

Shares of PB Fintech jumped 4.68% to Rs 483.15 on Friday, 2 December 2022.

The PB Fintech scrip was listed on 15 November 2021 at Rs 1150, a premium of 17.35% to the issue price of Rs 980. The stock is currently 50.70% below its initial public offer (IPO) price. It hit a record low of Rs 356.20 on 17 November 2022.

The IPO of PB Fintech received was subscribed 16.58 times. The issue opened for bidding on 1 November 2021 and it closed on 3 November 2021. The price band of the IPO was fixed at Rs 940-980 per share.

On a consolidated basis, PB Fintech reported net loss of Rs 186.64 crore in Q2 September 2022, lower than net loss of Rs 204.44 crore in Q2 September 2021. Revenue from operations surged 105.1% year on year to Rs 573.47 crore in Q2 September 2022.

During the quarter, total expenses jumped 62.6% to Rs 815.12 crore. Advertising and promotion expenses surged 93.51% to Rs 312.38 crore. Network and internet expenses increased 36.69% to Rs 24.33 crore. Employee benefit expense climbed 48.37% to Rs 410.29 crore.

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