Nearly 2.28 crore shares of PB Fintech changed hands in two block trades on December 2, representing a combined 5.1% stake. While the buyer and seller were unidentified, earlier reports said SoftBank is looking to sell a 5% stake in Policybazaar’s parent company in a block deal.

Currently, SoftBank owns about 10% of Policybazaar. As a result, its stake will drop to 5% after the deal closes.
The stock was quoted at Rs 479.35 apiece on the National Stock Exchange at 9:20 am, up 4%. While the stock rose 23% last month, it has fallen 64% since its debut.

The stake sold is reportedly worth Rs 1,000 crore. The floor price for the block deal is Rs 440 per share. SoftBank’s SVF Python II (Cayman Islands) bought the stake at Rs 290 per share, according to PB Fintech’s RHP. This represents a return on investment of 51%. SoftBank also holds a stake through SVF India Holdings (Cayman) Limited for an undisclosed cost.

On November 11, Tiger Global Eight Holdings sold 76.13 lakh shares at an average price of Rs 374.09 per share and 32.84 lakh shares at an average price of Rs 388.34 per share after the expiry of the pre-IPO lock-in period in PB Fintech. Internet Fund III Pte Ltd also sold 51.59 lakh shares at an average price of Rs 375.11.

CLSA recently gave the stock a buy rating with a target price of Rs 600 per share. “We expect the broader insurance industry to grow at a compound annual growth rate (CAGR) of more than 10% over 15 years, and see PB Fintech as a key beneficiary of the growing share of online insurance distribution,” it noted.

The company’s consolidated loss in the second quarter narrowed to Rs 186.63 crore from Rs 204.44 crore a year ago. The company’s operating income rose 105.11% YoY to Rs 573.47 crore on the back of strong growth in premiums, credit payouts and operating income.