Why Policybazaar stock tanked 10% in early trade today

Shares of PB Fintech, which operates online insurance broker Policybazaar and loan marketplace Paisabazaar, plunged 10 per cent in early trade today after chairman executive and CEO Yashish Dahiya disclosed his plan to sell 3.77 million equity shares through open market.

PB Fintech stock touched an intraday low of Rs 595, down 9.62 per cent against the previous close of Rs 658.35 on BSE.

The large-cap stock is trading lower than 5-day, 20-day, 50 day, 100-day and 200-day moving averages. It has fallen 36.3 per cent in 2022 and lost 8.62 per cent in a week.

Total 1.51 lakh shares changed hands amounting to a turnover of Rs 9.15 crore on BSE. The market cap of the firm fell to Rs 27,214 crore.

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The stock hit a 52-week high of Rs 1,470 on November 17, 2021 and a 52-week low of Rs 542.30 on May 12,2022.

 "The Company has received an intimation from Mr. Yashish Dahiya, Chairman and CEO of the Company, for an intention to sell up to 3,769,471 equity shares via bulk deals on the stock exchanges," PB Fintech said in an exchange filing.

 The aggregate shareholding of Yashish Dahiya as on March 31, 2022, stood at 19 million (4.23 per cent) and post exercise of 5.5 million ESOPs during May 2022 his aggregate shareholding increased to 24.52 million (5.45 per cent). As the ESOPs are subject to payment of taxes on exercise in addition to the payment of capital gain tax on the sale of shares, the proceeds from the sale of the 3.77 million shares are proposed to be used to make the payment of current and future taxes, the company said.

There is no further sale of shares planned beyond these shares, at least for 1 year, the company added.