SoftBank sells PB Fintech shares worth ₹914 crore; Details here
SoftBank entity SVF Python II Cayman conducted open market transactions, selling 1,14,21,212 equity shares of PB Fintech, the operator of Policybazaar, on December 15. These shares were divested at a rate of ₹800.05 per share, amounting to a total valuation of ₹913.75 crore.
Concurrently, the Government Pension Fund acquired 1.6 million shares of PB Fintech, and HDFC Mutual Fund secured 1.15 million shares at the same price point.
Notably, in October, SoftBank had previously divested a 2.54 percent stake, equivalent to 1.14 crore shares, in PB Fintech, fetching ₹871.2 crore.
In its second-quarter financial results, PB Fintech reported a significant reduction in losses, down by 89 percent from the previous year to ₹21 crore. Simultaneously, the company’s revenue grew by 42 percent year-on-year, reaching ₹812 crore.
On December 15, PB Fintech’s shares experienced a 2.15 percent decline, closing at ₹791. However, in year-to-date terms, the stock has witnessed an impressive rise of nearly 75 percent.
PB Fintech recorded a 3 percent surge in its shares on November 6 following the disclosure of a consolidated net loss of ₹21 crore for the quarter ending in September.
This net loss marked an 89 percent reduction compared to the ₹187 crore reported in the corresponding quarter of the previous year. Nevertheless, when assessed sequentially, the company’s net loss expanded by 75 percent from ₹12 crore in the June quarter.
The year-on-year loss reduction was driven by a surge in operating revenue, with the startup experiencing robust growth in contribution margins and renewal rates during the reported quarter.
Consolidated revenue witnessed a notable 42 percent year-on-year increase, reaching 812 crore. The primary online revenue also demonstrated strong performance, rising by 46 percent YoY to ₹597 crore.
“We are very pleased that our Health & Term Insurance business, which is a bulk of our long-term value, witnessed 53 percent YoY growth in new premium for Q2 FY24, which is the highest in the last 7 quarters. This growth continues to accelerate. Our total insurance premium for the quarter was ₹3,475 crore, an ARR of ₹14,000 crore,” the company said in its exchange filing.
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Published: 15 Dec 2023, 10:22 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.