In the latest move in its ongoing divestment strategy, SoftBank has executed multiple block deals, shedding 2.53% of its stake in PB Fintech, the parent company of Policybazaar. The cumulative worth of these deals amounts to a substantial INR 913.7 Cr, making it a significant development in the investment landscape.
SoftBank’s Stake Adjustment
SoftBank’s SVF Python II (Cayman) Limited originally held a 4.39% stake, equivalent to 1.97 Cr shares, in PB Fintech during the quarter ended September 2023. The recent transaction involving the sale of 1.14 Cr shares has now positioned SoftBank’s remaining stake at 83.23 Lakh shares in PB Fintech.
New Stakeholders Emerge
Societe Generale, HDFC Mutual Fund, Goldman Sachs (Singapore) Pte, Smallcap World Fund, ICICI Prudential Life Insurance Company Limited, and others are among the new stakeholders who have acquired the offloaded shares. The block deals saw Societe Generale and HDFC Mutual Fund each purchasing 15.5 Lakh PB Fintech shares, while Government Pension Fund Global acquired 16.5 Lakh shares.
Market Impact and Previous Sales
Following SoftBank’s recent stake sale, PB Fintech’s shares experienced a 2.3% decline, concluding the Friday session at INR 789.45 on the BSE. Notably, this move comes a year after SoftBank sold over 5% of its stake in PB Fintech. Additionally, SoftBank’s divestment activities included a significant block deal with foodtech giant Zomato just a week ago.
Continued Strategy and Financial Landscape
The recent stake sale aligns with SoftBank’s trend of reducing its shareholding in Indian listed entities, a strategy that commenced last year. The Japanese investment major’s move contrasts with the improving financial performance of PB Fintech, which reported a notable decline of over 89% YoY in net loss during Q2 FY24.
Tax Officials’ Visit
In an added note, PB Fintech informed exchanges that Income Tax officials recently ‘visited’ the offices of its subsidiary Paisabazaar earlier this week, hinting at potential regulatory scrutiny in the midst of these strategic shifts.
