31 Dec , 2021 By : monika singh
NEW DELHI: Shares of PB Fintech soared 5 per cent in Friday's session as the insurance company approved an investment of up to Rs 700 crore in one or more tranches in subsidiary Policybazaar Insurance Brokers Private Limited during FY22 and FY23, and up to Rs 299.99 crore in subsidiary Paisabazaar Marketing and Consulting Private Limited.
PB Fintech’s counter jumped to a high of Rs 974.25 as against Rs 927.85 at the previous close on the BSE.
In a statement on Thursday, PB Fintech said the present investments allow both the companies to strengthen their financial health and meet general operating expenses, while enhancing brand awareness, office presence and strategic initiatives.
Earlier this month, Morgan Stanley had initiated coverage on PB Fintech with an ‘equal weight’ rating and said that valuations of the firm appeared full, suggesting a target of Rs 1,160 on the company’s stock
The foreign firm said PB Fintech has a significant business vintage and leadership position and the insurance revenues, which account for 70 per cent of its revenues, are highly regulated.
Policybazaar, which is PB Fintech’s flagship platform, is the country’s largest digital insurance marketplace with a market share of 93.4 per cent, based on the number of policies sold through online insurance distribution platforms as on the previous financial year.
The company has partnered with 48 insurers, and has 51.1 million registered consumers on its platform, reports said, adding that it has sold 20.7 million policies on its platform and has 10 million unique transacting customers.
Policybazaar made a strong debut on bourses last month, with its Initial Public Offering (IPO) being subscribed nearly 17 times.
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