Shares of PB Fintech, the operator of online insurance aggregator Policybazaar and credit comparison portal Paisabazaar, slumped 11.5% on Tuesday after the company notified that chairman and CEO Yashish Dahiya was offloading over 37.69 lakh shares through bulk deals.
The decline is the second-biggest one since its listing. In February this year, Dahiya had sold another 60.88 lakh shares through the market sale.
Shares were sold at an average price of Rs 610.24 on the NSE, valued at Rs 230.03 crore. The stock ended Tuesday’s session at Rs 582.90 on the NSE. Buyers were not immediately known.
In an exchange filing late on Monday, PB Fintech said, “We hereby submit that the company has received an intimation from Yashish Dahiya, chairman and CEO, for an intention to sell up to 37,69,471 equity shares via bulk deals on the stock exchanges.”
The release further said exercising ESOPs during May 2022 Dahiya took his holdings to 5.45% from 4.23% in March 2022. “There is no further sale of shares planned beyond these shares, at least for one year,” the release said.
The company submits that the aggregate shareholding of Yashish Dahiya after the initial public offer (IPO) of the company was 1,72,38,878 (3.84%) and a total number of ESOPs options vested and due for exercise immediately after the IPO of the company was 1,06,57,500.
Out of the above outstanding stock options, he exercised 1,05,09,601 shares between February 2022 and May 2022. The remaining 1,47,899 vested ESOPs will be exercised within the next few days.
Apart from the above-vested stock options, 71,96,604 stock options were granted on 05 October 2021, which will get vested and exercisable over a period of 5 years commencing from the grant date i.e. 05 October 2021.
Earlier in February this year, Alok Bansal, co-founder of PB Fintech, had sold 28,57,820 shares of the company for Rs 236 crore.
In November, the company had made a film debut in the market after raising Rs 5,710 crore through its initial public offering (IPO). It had an offer price of Rs 980.00.
After hitting its all-time high of Rs 1,470.00 on November 17 last year, the stock has declined over the past six months, touching an all-time low of Rs 540.10 on May 10, data available on NSE showed.
Last week, the company reported a loss of Rs 219.61 crore for the quarter ended March 2022, down from a loss of Rs 298.02 crore in the December 2021 quarter.
Analyst View
Global brokerage firm Morgan Stanley has a target of Rs 945 on PB Fintech, which is below its issue price. It believes that the productivity metrics of the company are poised to improve.
“Adjusted Ebitda was in-line and the overall losses for the March quarter were lower than estimates. Revenue beat was driven by higher POSP business take rates. The productivity improvement was due to synergetic combination,” it said.
Domestic brokerage firm ICICI Securities also has a buy call on the insurance and financial aggregator with a target price of Rs 940. JM Financial finds the stock Rs 870 worthy.
