SoftBank, the Japanese tech giant, is planning to sell an additional 2.54% stake in PB Fintech, the parent company of leading online insurance platform Policybazaar, via the block deal route. The offer price range is Rs 752 to Rs 767 per share, which represents a 0-2% discount to the previous closing price of Rs 767 per share. The deal size is likely to be around $105 million or Rs 876 crore.
This is the second time that SoftBank has sold a stake in PB Fintech this year. In December 2022, SoftBank sold a 5.1% stake in the company for Rs 1,043 crore.
It is not clear why SoftBank is selling down its stake in PB Fintech. However, it is worth noting that SoftBank has been facing some financial challenges in recent years. In May 2023, SoftBank reported a record annual loss of $23.4 billion.
Despite SoftBank’s stake sale, PB Fintech’s stock has performed well in recent months. The stock has gained over 37% in the last 12 months.
Analysts believe that SoftBank’s stake sale is unlikely to have a significant impact on PB Fintech’s business. The company is well-positioned to benefit from the growing demand for online insurance in India.
What is PB Fintech?
PB Fintech is the parent company of Policybazaar, India’s leading online insurance platform. The company also owns Paisabazaar, a leading online financial marketplace.
Policybazaar offers a wide range of insurance products, including health insurance, motor insurance, life insurance, and travel insurance. The platform also offers financial planning services.
Paisabazaar offers a wide range of financial products, including personal loans, home loans, credit cards, and investment products.
Why is SoftBank selling its stake in PB Fintech?
There are a few possible reasons why SoftBank is selling its stake in PB Fintech.
- Financial challenges: SoftBank has been facing some financial challenges in recent years. In May 2023, SoftBank reported a record annual loss of $23.4 billion. This may have prompted SoftBank to sell some of its assets to raise cash.
- Change in investment strategy: SoftBank may be changing its investment strategy. The company has been investing heavily in technology startups in recent years. However, SoftBank may now be looking to focus on more established companies.
- Partial exit: SoftBank may not be exiting PB Fintech altogether. The company may simply be reducing its stake to take some profits.
What does this mean for PB Fintech?
SoftBank’s stake sale is unlikely to have a significant impact on PB Fintech’s business. The company is well-positioned to benefit from the growing demand for online insurance in India.
PB Fintech is a leading player in the online insurance market in India. The company has a strong track record of growth and profitability.
Analysts believe that PB Fintech’s stock is likely to remain attractive to investors in the long term.