PB Fintech, the parent company of Policybazaar, saw its shares decline by over 2 percent on June 7 following a show cause notice issued by market regulator Sebi to company chairperson and CEO Yashish Dahiya regarding a Dubai investment made in 2022.
The notice pertains to a $2 million investment in a Dubai-based marketing company, YKNP Marketing Management, through PB Fintech’s arm PB Fintech FZ-LLC, Dubai. PB Fintech clarified that the investment, which resulted in a 26.72 percent stake acquisition in November 2022, was not considered Unpublished Price Sensitive Information (UPSI) as its value was deemed non-material.
PB Fintech is contemplating legal advice to take appropriate steps in response to the notice. The investment in YKNP Management was aimed at accessing the UAE banking and sales team to serve Arabic customers.
The company assured that the notice would not significantly impact its financials, operations, or other activities. PB Fintech’s shares were trading 1.3 percent lower at Rs 1,267.00 on the NSE. Despite this decline, the stock has surged 58 percent year-to-date, outperforming the Nifty 50, which rose approximately 5 percent during the same period.
In the previous session, PB Fintech shares witnessed a gain after a significant deal worth Rs 428.10 crore took place on the exchanges. Notable stakeholders such as SoftBank, Tencent, Temasek Holdings, and BNP Paribas have divested their holdings in PB Fintech over the past year, capitalizing on the sharp appreciation in the stock’s value, which has more than doubled during this period.
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