NEW DELHI : Among the institutional buyers together with Premji Make investments need to promote shares price not less than ₹2,000 crore ($250 million) in listed on-line insurance coverage firm Policybazaar’s mother or father agency PB Fintech Ltd upon expiry of the one-year lock-in interval for the reason that firm went public, mentioned three folks with information of the event.
To make sure the inventory worth doesn’t undergo, the corporate helps these buyers line up consumers 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 inventory opening at round ₹1,200 apiece. The inventory has since fallen almost 57% to ₹520.45 apiece at shut of buying and selling on the NSE on Thursday.
“The corporate needs to keep away from having a Zomato form of a state of affairs and therefore needs to line up consumers forward of the expiry,” the second individual mentioned. The tip of the lock-in interval will increase the availability of tradeable shares.
You may also like
A bumper September quarter for banks?
What drove the SBI inventory above ₹5 trillion mark
How energetic is your actively managed mutual fund?
Meals supply firm Zomato Ltd noticed its inventory drop 11.4% to shut at a file low after the one-year lock-in interval for buyers who purchased shares within the firm’s preliminary public providing (IPO) ended on 23 July. Moore Strategic Ventures, Tiger International, Sequoia Capital and Uber bought stakes in Zomato upon expiry of the lock-in.
Whilst early stage and world buyers look to money out of a few of these investments publish lock-in, homegrown insurers and mutual funds have turned to be large backers of such corporations.
Final 12 months, Policybazaar raised ₹5,625 crore via the first route, promoting shares within the vary of ₹940-980 apiece.
The individual cited above mentioned the plan is for Avendus Capital’s wealth fund arm to both purchase the shares via its alternate funding fund (AIF) or line up consumers for a similar.
Premji Make investments holds round 2.07% of Policybazaar via its PI Alternatives Fund II. The identification of the opposite buyers who may promote their holdings couldn’t be ascertained instantly.
An e mail question to Avendus Capital and messages to Premji Make investments didn’t elicit any response until press time.
When contacted, a Policybazaar spokesperson mentioned it has no information of any such transaction within the offing.
Premji Make investments, the household workplace of Wipro chairman Azim Premji, invested $40 million in Policybazaar in 2015 as a part of a Sequence D fundraise. “Premji Make investments would wish to take some cash off the desk as soon as the lock-in ends,” mentioned the third individual cited above.
Based by Yashish Dahiya, Alok Bansal and Avaneesh Nirjar in 2008, PB Fintech counts SoftBank, Tiger International, InfoEdge, Falcon Edge amongst its buyers. PB Infotech runs each Policybazaar and Paisabazaar.
PB Infotech sharply widened its web loss within the June quarter to ₹204.3 crore from a web lack of ₹110.8 crore a 12 months earlier. Income greater than doubled to ₹505.2 crore from ₹237.7 crore in the course of 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 corporate 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.
ranjani.raghavan@livemint.com
Elsewhere in Mint
In Opinion, Harsh V Pant says India ought to benefit from its geopolitical candy spot. Jaspreet Bindra examines whether or not Sanskrit is the most effective language for AI. Sudipto Mundle argues why fiscal and financial insurance policies have to synchronise. Lengthy Story tells easy methods to repair a drowning Bengaluru.
Obtain The Mint Information App to get Every day Market Updates & Stay Enterprise Information.
Extra
Much less
Supply: Live Mint