Temasek Divests Entire Stake in PolicyBazaar’s Parent Firm for US$292M

Temasek Divests Entire Stake in PolicyBazaar’s Parent Firm for US$292M

by February 5, 2024

Singapore’s sovereign wealth fund Temasek has offloaded its entire holdings in PB Fintech, the parent company behind insurance broker PolicyBazaar and consumer credit marketplace PaisaBazaar, according to Mint.

This transaction, completed through a block sale, is valued at approximately INR 2,425.4 crore (approximately US$ 292.1 million).

Temasek executed the sale via its investment vehicle, Claymore Investments (Mauritius), divesting 24 million shares at a rate of INR 992.8 per share, as per the data from the Bombay Stock Exchange (BSE).

This strategic divestiture from PB Fintech by Temasek follows a trend of investors capitalising on their investments in the company. Notably, Japanese investor SoftBank exited its investment in PB Fintech last month, netting US$650 million.

The move by Temasek comes at a pivotal moment for PB Fintech, which recently celebrated its first profitable quarter, marking a notable turnaround in its financial performance.

For the quarter ending 31 December 2023, the company reported a net profit of INR 37.2 crore (US$4.5 million), a significant improvement from a loss of INR 87 crore (US$ 10.5 million) in the corresponding period the previous year.

This financial upturn coincided with the company’s share price surpassing its initial public offering (IPO) price.

PB Fintech, since its public debut in 2021, has established itself as a digital marketplace for insurance and financial products, raising INR 5,710 crore (US$ 687.6 million) through its IPO, which included sales by existing shareholders.


Featured image credit: Edited from Freepik