Early investors keen on selling Policybazaar stock

To make sure the stock worth doesn’t endure, the corporate helps these investors line up patrons for the anticipated expiry in November, mentioned one of many individuals cited above requesting anonymity.

On 15 November, 2021, PB Fintech listed on the home bourses at a 17% premium with the stock opening at round 1,200 apiece. The stock has since fallen practically 57% to 520.45 apiece at shut of buying and selling on the NSE on Thursday.

“The firm needs to keep away from having a Zomato type of a scenario and therefore needs to line up patrons forward of the expiry,” the second person said. The end of the lock-in period increases the supply of tradeable shares.

Food delivery company Zomato Ltd saw its stock drop 11.4% to close at a record low after the one-year lock-in period for investors who bought shares in the company’s initial public offering (IPO) ended on 23 July. Moore Strategic Ventures, Tiger Global, Sequoia Capital and Uber sold stakes in Zomato upon expiry of the lock-in. 

Even as early stage and global investors look to cash out of some of these investments post lock-in, homegrown insurers and mutual funds have turned to be big backers of such companies.

Last year, Policybazaar raised 5,625 crore through the primary route, selling shares in the range of 940-980 apiece.

The person cited above said the plan is for Avendus Capital’s wealth fund arm to either buy the shares through its alternate investment fund (AIF) or line up buyers for the same.

Premji Invest holds around 2.07% of Policybazaar through its PI Opportunities Fund II. The identity of the other investors who could sell their holdings could not be ascertained immediately.

An email query to Avendus Capital and messages to Premji Invest did not elicit any response till press time.

When contacted, a Policybazaar spokesperson said it has no knowledge of any such transaction in the offing.

Premji Invest, the family office of Wipro chairman Azim Premji, invested $40 million in Policybazaar in 2015 as part of a Series D fundraise. “Premji Invest would want to take some money off the table once the lock-in ends,” mentioned the third particular person cited above.

Founded by Yashish Dahiya, Alok Bansal and Avaneesh Nirjar in 2008, PB Fintech counts SoftBank, Tiger Global, InformationEdge, Falcon Edge amongst its investors. PB Infotech runs each Policybazaar and Paisabazaar.  

PB Infotech sharply widened its internet loss within the June quarter to 204.3 crore from a internet lack of 110.8 crore a 12 months earlier. Revenue greater than doubled to 505.2 crore from 237.7 crore through the interval. Policybazaar mentioned final month that its premium rose 52% to 2,430 crore within the June quarter from 1,594 crore a 12 months in the past. The firm claims to have a buyer base of 61.2 million and over 92% market share within the on-line insurance coverage aggregation enterprise throughout 40 insurance coverage centres in 32 cities.

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