Shares of PolicyBazaar parent, PB Fintech fell 1% on June 26 after a block deal worth Rs 920 crore hit the counter, with co-founders Yash Dahiya and Alok Bansal being the likely sellers.
As many as 50.50 lakh shares, equivalent to a 1.1% stake in the policy aggregator changed hands in the block deal window. The shares were sold at an average of Rs 1,821.50 apiece, reflecting a 1% discount from the last closing price.
The buyers and sellers involved in the transaction could not be immediately identified. However, just a day ago, CNBC-TV18 had reported that Yash Dahiya and Alok Bansal were looking to collectively cut down their stake in the company by offloading 1.1% stake through block deals. As per the report, the co-founders were targeting a valuation of $106 million for the stake.
While Yash Dahiya held a 4.31% stake in PB Fintech, Alok Bansal owned a 1.4% equity, the company’s latest shareholding data showed.
Meanwhile, the deal also triggers a 90-day lock-in period for the sellers, the CNBC-TV18 report added.
On the other side, global brokerage firm Citi recently initiated coverage on PB Fintech with a ‘buy’ call and a price target of ₹2,185 per share.
The brokerage highlighted the robust momentum in the company’s health insurance segment, which has recorded over 65% growth quarter-to-date. This, it noted, enhances visibility on long-term profitability.
Citi also believes that investor sentiment is likely to benefit from improved pricing discipline in the point-of-sale person (POSP) channel across the industry, along with increased activity at Paisabazaar, particularly through its PB Connect platform.
“Further consolidation in the POSP space, including recent mergers among top players and the potential IPO of another major firm, could reinforce pricing stability, a trend that bodes well for PB Fintech,” Citi added.
