PB Fintech block deal: Shares of PB Fintech, the parent company of PolicyBazaar and PaisaBazaar, fell as much as 2 per cent to the day's low price of Rs 1,314.65 in early trade on Friday. The losses in the stock were triggered after the counter saw multiple trades of 83.7 lakh shares, representing a 1.86 per cent equity in the firm, in the pre-opening trade. 

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

At 9:21 am, shares of the company traded with a cut of 1.5 per cent at Rs 1,321 per share on the BSE.

The company’s promoters are said to offload 1.86 per cent equity in the fintech firm for about Rs 1,053 crore through block deals. The floor price for the deal is pegged at Rs 1,258 apiece, a discount of over 6 per cent to Thursday’s closing price.

In the stock exchange filing, the company said Yashish Dahiya, Chairman and CEO intends to sell up to 54 lakh equity shares, while Alok Bansal, Vice Chairman and Whole-time Director is looking to sell up to 29,70,578 equity shares via bulk or block deals on the stock exchanges. 

Substantial portions of the proceeds from the sale are proposed to be used to make the payment of taxes on current and future ESOP exercises, added the filing. 

ESOPs are subject to payment of taxes on exercise in addition to the payment of capital gain tax on the sale of shares. On a post-sale basis, Yashish Dahiya will continue to hold 4.83 per cent stake and Alok Bansal will have a 1.63 per cent  stake in the company on a fully diluted basis. 

There is no further sale of shares planned beyond the aforesaid shares, at least for 1 year, noted the company’s disclosure.