The share price of Policybazaar fell more than 13% today after the company announced that its Chairman and CEO, Yashish Dahiya, intends to sell over 37.69 lakh shares. Policybazaar shares opened with a downside gap and went on to hit an intraday low of 568.60 on the NSE, roughly 13% lower than yesterday’s close of 658.75 per share.
Policybazaar informed the Indian stock exchanges that Yashish Dahiya had informed the PB Fintech board about offloading 37,69,471 company shares through a bulk transaction on the stock exchanges. Yashish Dahiya’s aggregate shareholding as of 31.03.2022 was 1,90,08,349 (4.23 percent), and following the exercise of 55,09,601 ESOPs in May 2022, his aggregate shareholding increased to 2,45,17,950 (5.45 percent).
PB Fintech Ltd informed Indian exchanges about Policybazaar Chairman & CEO offloading his shareholding in the company, citing, “We hereby submit that the Company has received an intimation from Mr. Yashish Dahiya, Chairman and CEO of the Company, for an intention to sell up to 37,69,471 equity shares via bulk deals on the stock exchanges.”
According to the Policybazaar exchange communication, Yashish Dahiya’s aggregate shareholding after the Company’s Initial Public Offer (“IPO”) was 1,72,38,878 (3.84 percent), and the total number of ESOPs options vested and due for exercise immediately after the Company’s IPO was 1,06,57,500.
He exercised 1,05,09,601 shares of the above-mentioned outstanding stock options between February and May 2022. Within the next few days, the remaining 1,47,899 vested ESOPs will be exercised. Aside from the above-mentioned vested stock options, 71,96,604 stock options were granted on October 5, 2021, and will become vested and exercisable over a 5-year period beginning on the grant date, October 5, 2021.
Yashish Dahiya’s aggregate shareholding as of 31.03.2022 was 1,90,08,349 (4.23 percent), and following the exercise of 55,09,601 ESOPs in May 2022, his aggregate shareholding increased to 2,45,17,950. (5.45 percent ). Because ESOPs are subject to taxes on exercise in addition to capital gains taxes on the sale of shares, the proceeds from the sale of the 37,69,471 shares are proposed to be used to pay current and future taxes.
“Furthermore, Mr. Yashish Dahiya’s aggregate shareholding will increase to 2,80,92,982 (5.98 percent) on a fully diluted basis following the proposed sale due to the exercise of 71,96,604 stock options that will vest and exercisable over a period of 5 years beginning from the grant date, i.e. October 05, 2021,” Policybazaar exchange communication concluded.
