PB Fintech bulk deal: WF Asian Smaller Companies Fund buys Rs 134 crore worth shares

PB Fintech, whose shares jumped 8 per cent on Thursday, saw WF Asian Smaller Companies Fund buying Rs 134 crore worth of company shares in a bulk deal, data available with BSE suggested.

Data showed WF Asian Smaller Companies Fund  bought 3,353,228 PB Fintech shares at an average price of Rs 400 apiece.

The stock rose 7.87 per cent to close at Rs 432.20 on BSE.

Before this, WF Asian Reconnaissance Fund had bought 50,00,000 PB Fintech shares on November 14 at Rs 388, NSE data showed.

Tiger Global Eight Holdings had sold PB Fintech shares on November 14 and November 11. Internet Fund III PTE sold PB Fintech shares on November 11.

JM Fnancial in a note on November 22 said PB Fintech is probably the one where management has been most outspoken about adjusted Ebitda breakeven. As of Q2FY23, the company already has adjusted Ebitda level profitability in its core
online Insurance business with Paisabazaar expected to become profitable in Q4FY23, it said.

JM Financial said the company has already demonstrated a favourable trend with adjusted Ebitda margin reaching minus 9 epr cent in Q2FY23. It expects PB Fintech to achieve profitability in Q4FY23 as Q4 is seasonally a very strong quarter for insurance. "However, we are expecting losses again in H1FY24 with large enough profits in H2FY24 to ensure that the company generates," it said.