PB Fintech's top executives to offload marginal stakes; floor price at Rs 1,258
ETMarkets.com
Synopsis
Substantial portions of the proceeds from the sale will be used to make the payment of taxes on current and future ESOP exercises. ESOPs are subject to payment of taxes on exercise in addition to the payment of capital gain tax on the sale of shares. Post the sale Yashish Dahiya will continue to have a 4.83% stake and Alok Bansal will have a 1.63% stake in PB Fintech on a fully diluted basis.
Top executives of PB Fintech, the parent company of Policybazaar, are looking to sell marginal stakes in the company through block deals.
The floor price for the transaction is fixed at Rs 1,258 apiece.
Substantial portions of the proceeds from the sale will be used to make the payment of taxes on current and future ESOP exercises. 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 have a 4.83% stake and Alok Bansal will have a 1.63% stake in PB Fintech on a fully diluted basis. The company said the executives are committed to the growth and success of the company.
In the recent fourth quarter, PB Fintech's revenue surged 25% year-on-year (YoY), driven by a growth of 26% YoY in the insurance business and 22% growth in the credit business.
This is the first-ever quarter where the company has reported a positive EBITDA margin of +0.5% against -7.8% a year ago. The strong margin improvement is driven by controlled employee expenses and the increasing mix of renewal book, which is high margin in nature.
Further, owing to higher other income on investments, the company has reported a healthy PAT of Rs 60.2 crore in Q4FY24.
Analysts expect this trend to continue for the foreseeable future.
Keynote Capital has revised its estimates and changed the view from Buy to Reduce for the stock despite healthy fourth-quarter numbers with a target price of Rs 1,223.
"The company stands at a pivotal juncture, driven by catalysts such as renewal commission growth, strategic expansion into tier-2/3 cities through offline channels, and rigorous cost management, all poised to generate favourable operating leverage," said.
So far this year, the company's shares have rallied by a robust 68%. On Wednesday, the stock closed 5.4% higher at Rs 1,340.50 on NSE.
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Yashish Dahiya, Chairman and CEO of the company has expressed intention to sell up to 54 lakh shares, and Alok Bansal, Vice Chairman and Whole-time Director, proposed to offload up to 29.7 lakh shares.The floor price for the transaction is fixed at Rs 1,258 apiece.
Substantial portions of the proceeds from the sale will be used to make the payment of taxes on current and future ESOP exercises. 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 have a 4.83% stake and Alok Bansal will have a 1.63% stake in PB Fintech on a fully diluted basis. The company said the executives are committed to the growth and success of the company.
In the recent fourth quarter, PB Fintech's revenue surged 25% year-on-year (YoY), driven by a growth of 26% YoY in the insurance business and 22% growth in the credit business.
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This is the first-ever quarter where the company has reported a positive EBITDA margin of +0.5% against -7.8% a year ago. The strong margin improvement is driven by controlled employee expenses and the increasing mix of renewal book, which is high margin in nature.
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Further, owing to higher other income on investments, the company has reported a healthy PAT of Rs 60.2 crore in Q4FY24.
ADVERTISEMENT
Analysts expect this trend to continue for the foreseeable future.
Keynote Capital has revised its estimates and changed the view from Buy to Reduce for the stock despite healthy fourth-quarter numbers with a target price of Rs 1,223.
ADVERTISEMENT
"The company stands at a pivotal juncture, driven by catalysts such as renewal commission growth, strategic expansion into tier-2/3 cities through offline channels, and rigorous cost management, all poised to generate favourable operating leverage," said.
So far this year, the company's shares have rallied by a robust 68%. On Wednesday, the stock closed 5.4% higher at Rs 1,340.50 on NSE.
(You can now subscribe to our ETMarkets WhatsApp channel)
