PB Fintech stock falls after Sebi issues show cause notice to CEO Yashish Dahiya

Shares of Policybazaar parent PB Fintech fell over 2 percent on June 7 after market regulator Sebi issued a show cause notice to company chairperson and CEO Yashish Dahiya over a Dubai investment made in 2022.

The Show Cause Notice relates to a $2 million investment in a Dubai-based marketing company – YKNP Marketing Management – through PB Fintech‘s arm PB Fintech FZ-LLC, Dubai, the company informed in a regulatory filing on June 6.

PB Fintech FZ-LLC had bought stake worth 26.72 percent in November 2022 which was ‘not considered’ Unpublished Price Sensitive Information (UPSI) as the value of the transaction was ‘non material’.

PB Fintech said it is considering legal advice to take appropriate steps in due course of time. The stake purchase was to get access to UAE banking and sales team to cater to Arabic customers.

The notice will have no material impact on the financials, operations or other activities of the company, PB Fintech said. Earlier in August 2022, the company had disclosed an investment of $4 million to acquire stake in YKNP Management.

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At 9:19 am, PB Fintech shares were trading 1.3 percent lower at Rs 1,267.00 on the National Stock Exchange (NSE). So far this year, the stock has rallied 58 percent, outpacing benchmark Nifty 50 which rose around 5 percent during this period.

In the previous session, shares of gained after a large deal worth Rs 428.10 crore took place on the exchanges. Around 33 lakh shares, or a 0.73 percent stake in the company, changed hands in a large deal.

The transaction was executed at an average of Rs 1,297 per share, marking a slight premium from the stock’s June 5 close of Rs 1,293.35. The large deal in PB Fintech followed two other major stake sales in the company that were executed last month.

Firstly, two of PB Fintech’s top executives, Chairman Yashish Dahiya and Vice-Chairman Alok Bansal, sold 83.7 lakh shares, making up a 1.86 percent stake in the company, through two block deals.

After that, Tencent Cloud Europe also offloaded a 1.2 percent stake in the company, earning Rs 677 crore.

Also Read | Sebi notice to PB Fintech’s Yashish Dahiya over $2 million Dubai investment

Over the past year, notable marquee names such as SoftBank, Tencent, Temasek Holdings, and BNP Paribas have offloaded their holdings in the Policybazaar parent in order to capitalize on the sharp run-up in the stock’s value. PB Fintech shares have more than doubled in value over the past year.

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