Policybazaar's parent PB Fintech announces fresh ESOP scheme

PB Fintech, the parent company of Policybazaar and Paisabazaar, has announced a significant expansion of its Employee Stock Option Plan (ESOP) by introducing a new scheme under the PB Fintech Limited Employees Stock Option Scheme 2024.

The new ESOP scheme is reportedly valued at around Rs 1,931 crore (approximately $233 million). 

The board of PB Fintech has passed a resolution to grant 1,14,00,000 employee stock options, which is 2.5% of the company's issued and paid-up share capital as of August 14, 2024.

Details of the ESOP plan

The ESOP scheme is structured to align with the Securities and Exchange Board of India (SEBI) regulations, specifically the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

Each of the 1,14,00,000 stock options, which can be converted into an equal number of shares, will have an exercise price set at a 10% discount to the volume-weighted average price of the company's shares over the last 90 days preceding the grant date. 

100% of options will vest in a single vesting cycle and after completion of 4 years from the grant date,the company said.

Financial performance

In the first quarter of the current fiscal year, PB Fintech reported revenues of Rs 1,010 crore and a profit of Rs 60 crore.

For the full fiscal year 2023-24, the company saw its revenue increase by 34.4% year-on-year to Rs 3,438 crore and achieved a net profit of Rs 64 crore.