Policybazaar-owner PB Fintech shares crash practically 10% as CEO Yashish Dahiya decides to promote 37.69 lakh shares

Shares of PB Fintech, the operator of on-line insurance coverage aggregator Policybazaar and credit score comparability portal Paisabazaar, tanked practically 10 per cent within the early commerce on Tuesday after the corporate stated that its chairman and CEO Yashish Dahiya plans to promote round 37.69 lakh fairness shares through bulk offers on the inventory exchanges.

The scrip fell to Rs 595 apiece, down 9.68 per cent on the National Stock Exchange (NSE) and 9.62 per cent on the BSE.

In an alternate submitting late on Monday, PB Fintech stated “we hereby submit that the Company has received an intimation from Mr. Yashish Dahiya, Chairman and CEO of the Company, for an intention to sell up to 37,69,471 equity shares via bulk deals on the stock exchanges.”

The firm additional added that the combination shareholding of Dahiya as on March 31, 2022 was 1,90,08,349 (4.23 per cent) and put up train of 55,09,601 ESOPs throughout May 2022 his combination shareholding elevated to 2,45,17,950 (5.45 per cent).

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“As the ESOPs are subject to payment of taxes on exercise in addition to the payment of capital gain tax on the sale of shares, the proceeds from the sale of the 37,69,471 shares are proposed to be used to make the payment of current and future taxes,” the corporate assertion learn.

In November, the corporate had made a agency debut out there after elevating Rs 5,710 crore by its preliminary public providing (IPO). It had a proposal value of Rs 980.00.

After hitting its alltime excessive of Rs 1,470.00 on November 17 final 12 months, the inventory has declined over the previous six months, touching an all time low of Rs 540.10 on May 10, knowledge obtainable on NSE confirmed.

The firm final week had reported a lack of Rs 219.61 crore for the quarter ended March 2022, down from a lack of Rs 298.02 crore within the December 2021 quarter.

Commenting on the inventory motion, Santosh Meena, Head of Research at Swastika Investmart in a notice stated, “The stock got listed in November 2021 and has seen almost a 70 per cent fall since its listing. The issue was exorbitantly priced at market to sales of 46.40x during its IPO, and it remains expensive despite the recent correction. The company operates in a very competitive space as there aren’t any significant barriers to entry, plus the company is still a loss-making one despite the significant rise in revenues in FY22. Further, we believe that the current market conditions are punishing companies that are growing without showing profitability and are skeptical of companies that are relying on buzzwords like “underpenetrated in India” to indicate a rosy future image.”