SoftBank is likely to sell a 5 percent stake in PB Fintech, the parent company of Policybazaar, via a block deal on December 2, CNBC Awaaz reported on December 1, citing sources.
The stake that would be offloaded would be worth Rs 1,000 crore, the report said.
The base price for the block deal is Rs 440 per share, the report added.
Currently, SoftBank holds around a 10 percent stake in Policybazaar. Hence, post the deal, SoftBank will have a 5 percent stake in the company.
The block deal, as per the report, is likely to be at a 5 percent discount to its closing price of December 1. The stock ended at Rs 461.55 on the BSE, up 2.05 percent against the previous close.
Citi is the sole broker to the deal, the report stated.
SoftBank has invested around $199 million in Policybazaar and sold shares worth $250 million in its IPO last year. It has made a multiple of 2.5X on its investment in the insurance aggregator at an internal rate of return of 38 percent.
For the September 2022 quarter, PB Fintech said its consolidated loss narrowed to Rs 186.63 crore compared to Rs 204.44 crore loss in the same quarter last year. The growth was led by strong growth in insurance premiums, credit disbursal and operating revenue.
The company said its revenue from operations for the period jumped 105.11 percent to Rs 573.47 crore from Rs 279.58 crore reported in the corresponding quarter last year.
PB Fintech made its debut on bourses in November last year.
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