Shares of PB Fintech, the parent company of online insurance aggregator Policybazaar, jumped 6 per cent in Friday’s trade as SoftBank is likely to sell 5 per cent stake in the company through a block deal. NSE data showed that a total of 2,28,42,424 shares of Policybazaar were converted in a block deal earlier today, amounting to Rs 1,042.52 crore.
Following the development, the scrip gained 6.07 per cent to hit an intraday high of Rs 489 on the BSE. With this, the stock has narrowed year-to-date losses to 51 per cent.
Reuters had reported on Thursday that SoftBank Group was looking to sell a 5 per cent stake in PB Fintech through a block deal.
The block deal on Friday could happen at a base price of Rs 440, suggested Reuters citing a media report. SoftBank declined to comment to Reuters while PB Fintech also did not respond to a Reuters request for comment.
Japanese conglomerate SoftBank holds over 10 per cent stake in PB Fintech through two entities.
In a recent note, JM Financial said that PB Fintech is perhaps the company where the management has been most vocal about the adjusted EBITDA breakeven, which is anticipated in Q4FY23.
As of the September quarter, PB Fintech has already achieved adjusted Ebitda level profitability in its core online insurance business, with Paisabazaar expected to turn profitable in Q4FY23, the brokerage said.
JM Financial said the company has already demonstrated a favorable trend with the adjusted EBITDA margin reaching minus 9 EPR in Q2 FY2023. It expects PB Fintech to reach profitability in Q4 FY2023 as Q4 is a very strong quarter for insurance in terms of weather. “However, we are expecting a loss again in H1FY24, with sufficient profit in H2FY24 to ensure that the company generates,” it said.