After Paytm, SoftBank To Now Sell 5% Stake In PB Fintech Via Bulk Deal

SoftBank is reportedly set to sell 5% of its stake, or 2.28 Cr shares, in insurtech giant Policybazaar’s parent entity PB Fintech via a block deal on Friday (December 2)

The stake sale would be worth INR 1,000 Cr, CNBC-TV18 reported citing sources. The deal would take place at a discount of 4.6% to PB Fintech’s last closing price of INR 461.55 on the BSE. 

The deal’s base price would be INR 440 per share, the report said, adding that Citi would be the broker for the deal.

As of September 2022, SoftBank, through its SVF Python II (Cayman) Limited and SVF India Holdings (Cayman) Limited, held a total of 10.16% stake in PB Fintech. The stake sale would bring down its stake in the startup by half. 

SoftBank has been a major investor in the Indian new-age tech startups, including PB Fintech, Delhivery, Paytm, and Zomato. 

The Japanese investment firm had invested a total of about $199 Mn in PB Fintech. Just prior to the startup’s IPO in November last year, SoftBank sold $250 Mn worth of its shares.

As per the current share price of PB Fintech, SoftBank’s current stake in the company is worth INR 2,108.6 Cr (approximately $259 Mn).

Unlike the sell-off seen by its peers like Delhivery, Paytm and Nykaa on expiry of their respective lock-in periods for pre-IPO investors, PB Fintech’s expiry last month turned out to be relatively an uneventful event as the stock did not face much selling pressure.

However, Tiger Global dumped a total of 6.55% stake in the startup in multiple block deals.

Last month, SoftBank also offloaded  $200 Mn worth shares of fintech giant Paytm. 

SoftBank’s investments in the Indian new-age tech startups have weighed heavily on the company’s performance. Paytm alone contributed $500 Mn loss to SoftBank’s total portfolio as of September 30, 2022. However, the Japanese investor pegged the valuation of its investment of $200 Mn in PB Fintech at $300 Mn.

PB Fintech saw an 8.6% year-on-year decline in its consolidated net loss to INR 186.5 Cr in Q2 FY23 even as it reported a strong growth in its lending business, while operating revenue more than doubled to INR 573.5 Cr. 

PB Fintech’s shares have fallen over 60% since its listing last year. The startup’s shares ended today’s session at INR 461.55, up 2% from their previous close.