Shares of PB Fintech gained nearly 1 percent on November 28 on reports of infusion of Rs 350 crore into PolicyBazaar. At 11:29am, the stock was trading at Rs 824.24 on the NSE.
Insurance brokers of Policy Bazaar, a wholly-owned subsidiary of PB Fintech Ltd, will sell around 58 lakh shares to the company against the investment, the company said in an exchange filing.
PB Fintech will infuse the funds in one or more tranches through 2023- 24 and 2024-25. “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 Policy Bazaar have been allotted,” said the filing.
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“The present investment allows the company to strengthen the financial health of its wholly owned subsidiary to meet its general operating expenses and enhance brand awareness, office presence and strategic initiatives,” PB Fintech informed the bourses.
Brokerage views, target price
Brokerage firm JM Financial has assigned a ‘buy’ rating to the PB Fintech stock with a target price of Rs 1,010 per share in a report released on November 6.
The parent company of Policy Bazaar reported a consolidated net loss of Rs 21 crore for the quarter ended September. It was 89 percent lower than Rs 187-crore loss reported a year ago. However, on a sequential basis, the company's net loss widened by 75 percent from Rs 12 crore in the June quarter.
Also read: PB Fintech to infuse Rs 350 crore into Policy Bazaar
The loss narrowed on a year-on-year basis on a jump in its operating revenue as the startup reported healthy growth in contribution margins and renewal rate in the reporting quarter.
The consolidated revenue saw a rise of 42 percent year-on-year to 812 crore. The core online revenue came in at Rs 597 crore, higher by 46 percent YoY.
Stock performance
The PB Fintech stock has given a return of 35.46 percent over the last six months. The benchmark Nifty50 index has given a return of 6.43 percent over the same duration.
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