SoftBank To Sell 5% Stake In PolicyBazaar Via Block Deal Today

Japan’s SoftBank is going to sell a 5.1% stake in Policybazaar (PB Fintech) through a block deal today to raise nearly ₹1,000 crore. The block deal is set for ₹440 per share.

SoftBank is prepared to sell half of its 10% share in PB Fintech, the parent company of online insurance broker platform Policybazaar, on Friday.

The value of SoftBank’s sold stake is Rs 1,000 crore. According to a CNBC Awaaz report, the base price for the block auction comprising 2.28 crore shares is ₹ 440 per share. The broker is reportedly Citi.

At the moment, SoftBank owns 10% of Policybazaar. After the block purchase on Friday, SoftBank will hold 5% of the new-age technology company.

The block transaction is most certainly at a 5 to 6 percent discount to PB Fintech’s closing price as of December 1st, claims the article. 

The stock rose 2.05 percent from the previous close to trade at ₹ 461.55 per share on the BSE.

According to the report, SoftBank contributed about $199 million to the insurance broker and raised $250 million when it went public last year.

The combined loss for PB Fintech in the third quarter of 2018 decreased from ₹ 204.44 crore to ₹ 186.63 crore. 

According to the corporation, the growth was driven by high increases in operating revenue, credit disbursal, and insurance premiums.

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Revenue from operations for Policybazaar increased from the same time last year to ₹573.47 crore from ₹279.58 crore.

SoftBank owned 10.17% of the business that runs the internet insurance aggregator as of September 2022. It will almost be cut in half by the sale.

Till the time of publication on Thursday, SoftBank and Citigroup, the deal’s sole bookrunner, had not responded to ET’s questions.

Shares of PB Fintech closed Thursday with a 1.6% gain on the NSE after having lost 62% in the previous year.