Shares of PB Fintech, the parent of online insurance aggregator Policybazaar, jumped 6 per cent in Friday’s trade as SoftBank probably sold 5 per cent stake in the company via block deal. NSE data showed a total of 2,28,42,424 Policybazaar shares changed hands in a block deal earlier today, amounting Rs 1,042.52 crore.
Following the development, the scrip rose 6.07 per cent to hit a high of Rs 489 on BSE. With this, the scrip has cut year-to-date losses to 51 per cent.
SoftBank Group was looking to sell a 5 per cent stake in PB Fintech through a block deal, Reuters had reported on Thursday.
The block deal on Friday could be at a base price of Rs 440, Reuters had suggested citing a media report. SoftBank declined to comment to Reuters while PB Fintech also did not respond to a Reuters request for comment.
The Japanese conglomerate SoftBank owned more than 10 per cent stake in PB Fintech through two of its units.
In a recent note, JM Fnancial said PB Fintech is probably the one company where management has been most outspoken about adjusted Ebitda breakeven, which is anticipated in Q4FY23.
As of September quarter, PB Fintech already has adjusted Ebitda level profitability in its core online Insurance business with Paisabazaar expected to become profitable in Q4FY23, the brokerage noted.
JM Financial said the company has already demonstrated a favourable trend with adjusted Ebitda margin reaching minus 9 epr cent in Q2FY23. It expects PB Fintech to achieve profitability in Q4FY23 as Q4 is seasonally a very strong quarter for insurance. “However, we are expecting losses again in H1FY24 with large enough profits in H2FY24 to ensure that the company generates,” it said.