Online insurance aggregator and brokerage platform PolicyBazaar is all set to receive Rs 650 crore or nearly $80 million from its parent entity (PB Fintech Limited) via right issue.
The board at PolicyBazaar has passed a special resolution to offer 10,797,342 equity shares via “Rights Issue Offer” at an issue price of Rs 602 per share to get Rs 650 crore or close to $80 million from its holding entity, the company’s regulatory filing with the RoC show.
PB Fintech Limited, parent entity of PolicyBazaar has booked an operating revenue of Rs 505 crore for the first quarter of FY23 (Q1 FY23). Its revenue shrank 6.5% during the quarter from Rs 540 crore in the last quarter of FY22. As per its unaudited financial statement with the national stock exchange (NSE), the company’s losses also narrowed 6.8% to Rs 204 crore in Q1 FY23 as compared to Rs 219 crore during Q4 FY22.
Early this week, Morgan Stanley cut down PolicyBazaar’s revenue forecasts by 8–28% for fiscal 2023–2027. The slowdown in topline was attributed to weaker growth in retail protection and motor insurance segments.
PolicyBazaar went public in November last year at a valuation of $6 billion. Over the past month, PolicyBazaar share price has been down by 22% and currently, its shares are being traded at Rs 452.
Update: The headline and story have been changed to reflect that Policybazaar is receiving money from its parent entity.