Mumbai Japanese conglomerate SoftBank PB Fintech-owned listed insurance aggregator Policybazaar will sell half its stake in a block deal on December 2 for an amount of $130 million, according to a person aware of the development.
The investment management giant will sell 5% stake, approximately 22 million shares, at a floor price out of a total 10% stake in Policybazaar. 440 appears, said the person mentioned above. The floor price is set at a discount of 5% from the closing price of PB Fintech.
Shares of PB Fintech ended the trading session up 2% on Thursday 461.55 per share on BSE.
SoftBank is set to deliver an internal rate of return of 38% with a multiple on invested capital (MOIC) of 2.5 times. The group had initially invested around $200 million in Policybazaar in 2018 from its Vision Fund I.
According to the person cited above, Citi is the sole banker for the deal. Queries sent to the international banker remained unanswered till press time. SoftBank, PB Fintech and Citi declined to comment on the development.
Founded in 2008 by Yashish Dahiya and Alok Bansal as a price-comparison platform, PolicyBazaar made its public market debut in November 2021 and gained nearly 18% on listing. SoftBank sold nearly 20% of its total stake in the insurance company during the listing for $250 million.
However, being one of the earliest new age companies to list on the stock exchanges, PB Fintech has been no exception in outperforming these stocks in the last one year. The stock is down about 62% since December 1 last year and has corrected 48.5% year-to-date. Amazingly, the stock has gained 20.1% since the end of its anchor investor lock-in period that expires on 16 November 2022.
Earlier in November, US-based venture capital firm Tiger Global had divested 3.57% stake in PB Fintech through open market with 1.6 crore shares. Exchange of hands in a secondary market transaction in the range of 606 crores 374-388 per share.
PB Fintech counts Steadview Capital, Falcon, Tiger Global, SVF Python, Tencent, Inventus Capital and True North among its investors.
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