PB Fintech shares in focus post Rs 350 crore investments in Policybazaar Insurance Brokers

Shares of PB Fintech Ltd will be in focus on Tuesday morning after the company told stock exchanges that it made a further investment of Rs 349.99 crore in its wholly-owned arm Policybazaar Insurance Brokers to strengthen the financial health of the subsidiary.

"As part of company’s investments, the present investment allows company to strengthen the financial health of its mentioned wholly-owned subsidiary to meet its general operating expenses and enhancing brand awareness, office presence and strategic initiatives," PB Fintech told stock exchanges.

The transaction is done at arm’s length basis, PB Fintech said adding that the arm is professionally managed company with no identifiable promoter.

To recall, PB Fintech had on August 7 while announcing its quarterly results said that it would infuse the funds in the form of capital in Policybazaar as approved by its board in one or more tranches in FY24 and FY25. In the same release, it suggested further investment of up to Rs 700 crore in one or more tranches, by subscribing to the equity shares of Rs 10 each of Policybazaar during the ongoing financial year.

On Friday, PB Fintech said it has been allotted 58 lakh shares of Policybazaar.  "The company has invested Rs 349,99,99,904/- against which 58,04,311 equity shares of  Rs 10/- each at a premium of Rs 593/- per share of Policybazaar have been allotted," it said.

The investment has been made at a price of Rs 603 apiece.

In a recent note, JM Financial said PB Fintech continued to strategically tone the growth in new initiatives as competitive intensity remains heightened. It found the performance of September quarter impressive considering the growth was driven by core business, with new business premium growing 60 per cent-plus YoY.

"The management remains confident of achieving PAT profitability in FY24 and its guidance on Rs 1,000 crore PAT in FY27 and we believe there is a strong pathway for the company to positively surprise on this," it said.

 

Also read: GIFT Nifty up 13 points: Asian markets, crude oil prices, dollar movement & more

Also read: Stock recommendations for November 28, 2023: Vardhman Textiles, Divi's Labs and Granules India