According to the sources Japanese conglomerate SoftBank will sell 50 per cent of its stake in listed insurance aggregator PolicyBazaar, which is owned by PB Fintech, in a block deal tomorrow (2 December) for $130 million.
According to the individual cited above, the investment management giant will divest 5 per cent (approximately 2.2 crore shares) of its total 10 per cent stake in PolicyBazaar at a floor price of Rs 440 per share. The floor price is set at a 5 per cent discount to the closing price of PB Fintech.
On the BSE, shares of PB Fintech ended Thursday’s trading session up 2 rupees at Rs 461.55.
SoftBank expects an internal rate of return (IRR) of 38 per cent and a multiple on invested capital (MOIC) of 2.5 times. In 2018, the conglomerate invested nearly $200 million in PolicyBazaar through its Vision Fund I.
PolicyBazaar, a price-comparison platform founded in 2008 by Yashish Dahiya and Alok Bansal, made its public market debut one year ago in November 2021 and has gained nearly 18 per cent since then. During the listing, SoftBank sold about 20 per cent of its total stake in the insurance company for $250 million.
Surprisingly, the stock has increased by 20.1 per cent since the end of its anchor investor lock-in period on November 16, 2022.
PB Fintech reported a net loss of Rs 186.6 crore in Q2FY23, down from Rs 204.4 crore the previous year. Its revenue from operations increased twofold year on year to Rs 573.4 crore from Rs 279.6 crore.
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