Policybazaar’s Value Shrinks by Around $400 mn

Shares of PB Fintech, the parent company of PolicyBazaar and PaisaBazaar, plummeted after the CEO sold his stake. At around 10 p.m. on June 6, the company informed exchanges that Yashish Dahiya, chairman and CEO of PB Fintech, will sell up to 37 lakh equity shares in bulk deals.

According to NSE data, the stock has dropped by more than 12% since then, and its market cap has shrunk by around 3,000 crores or $400 million since yesterday's close. Dahiya had a 5.45 percent stake in the company prior to the sale, which he received through ESOPs.

Dahiya, on the other hand, would be selling his stake at a lower price than the company's founders. Alok Bansal, the company's co-founder, sold 2.85 million shares in February for 236 crore at an average price of $825 per share.

So far in 2022, the stock has fallen 52 percent and is now 40 percent below its IPO price. PolicyBazaar raised 5,709 crores through an initial public offering (IPO) in November 2021, which included both a fresh issue and an offer for sale by the promoters.

Policybazaar is one of several tech companies that will be listed in 2021, including Zomato, Paytm, and Nykaa. Unlike the majority of the companies listed this year, PolicyBazaar's investors saw a 17 percent increase in the issue price.