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PolicyBazaar Shares Gain After Large Trades

As many as 2.28 crore shares, or 5.1% equity, changed hands in two large trades on the NSE, according to pre-market Blooberg data.

<div class="paragraphs"><p>PolicyBazaar apps. (Source: Play Store)</p></div>
PolicyBazaar apps. (Source: Play Store)

Shares of PB Fintech Ltd., the owner of insurance aggregator Policybazaar, gained after two large trades on Friday.

As many as 2.28 crore shares, equaling 5.1% of the equity, changed hands in two large trades on the National Stock Exchange, according to pre-market Bloomberg data.

Though buyers and sellers weren't immediately known, according to a Bloomberg report, Japan's SoftBank was expected to sell shares worth Rs 1,000 crores in the company via a block deal on Friday.

The Masayoshi Son-led fund had offered to tender shares at a floor price of Rs 440.2, according to the terms being quoted. That is a 4.6% discount on Policybazaar’s Thursday closing price.

As of Sept. 30, SoftBank, via two funds—SVF Python II (Cayman) Ltd. and SVF India Holdings (Cayman) Ltd.—owned a 10.1% stake in the Gurugram-based company.

The stock gained 6.1% to hit an intraday high of Rs 489 apiece. It ended at Rs 483.15, 4.8% higher.

The scrip is currently trading around 50% down from its IPO price of Rs 980 apiece and about 67% from its all-time high.

Of the 11 analysts tracking the company, 10 maintain 'buy' and one suggests 'hold', according to Bloomberg data. The 12-month consensus price target implies an upside of 43.8%.

Since lock-in period for several new-age companies that went public last year expired, several marquee global investors such as TPG, Lighthouse India, Alibaba, Tiger Global, and SoftBank have sold large stakes to trim their holdings in faltering stocks of FSN E-Commerce Ventures Ltd. (Nykaa), One 97 Communications Ltd. (Paytm) and Zomato Ltd.

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