 "PB Fintech slips 10% in 2 days, hits 8-mth low; tanks 41% from January high")
Shares of PB Fintech, which owns online financial services platform PolicyBazaar, were under pressure for the second straight day , down 6 per cent to Rs 1,322 on the BSE in Thursday's intraday trade. The stock touched an eight-month low today, and was trading at its lowest level since June 2024.
In the past two trading days, the stock price of the financial technology (fintech) company has slipped 10 per cent after it proposed to infuse Rs 696 crore in its subsidiary PB Healthcare Services Private Ltd. in the next financial year.
The company's board approved a proposal to make an investment for an aggregate amount of up to Rs 696 crore in PB Healthcare Services by way of subscribing or purchasing its shares or compulsory convertible preference shares during the financial year 2025-26, according to an exchange filing on Tuesday.
After the proposed investment, subject to the shareholder's approval, PB Fintech would hold up to 33.63 per cent stake in its subsidiary.
The investment will allow the insurance and lending platform to strengthen the financial health of its subsidiary to meet its general operating expenses and enhance brand awareness, office presence, and strategic initiatives, it said in the statement. ALSO READ: Starlink deal: Can the stars shine bright for Airtel, RIL? Check Charts here
The stock has corrected 41 per cent from its 52-week high level of Rs 2,254.95, which it touched on January 1, 2025. PB Fintech shares (up 165 per cent) had outperformed the broader markets in calendar year 2024. BSE Sensex, on the other hand, was up 8 per cent, while the BSE Midcap gained 26 per cent last year.
PB Fintech operates India's largest online insurance marketplace - Policybazaar - its key business segment, which has a 93 per cent market share. It also distributes credit online and insurance through offline channels.
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In the October to December quarter (Q3FY25), PB Fintech achieved a strong growth in revenue, led by the insurance business. PB Fintech's core health and life insurance businesses are outpacing growth projections. Thus, the company is proactively investing in operational capacity and brand awareness to sustain this upward trajectory and support long-term growth.
Meanwhile, the Life Insurance industry reported an overall APE (annualised premium equivalent) decline of 6 per cent year-on-year (Y-o-Y) in February 2025, primarily led by a 23 per cent decline in LIC's APE. Private players, in contrast, reported a modest 5 per cent Y-o-Y growth, reflecting ongoing challenges in sustaining industry-wide momentum. A high base effect and market-driven slowdown in ULIP sales are now weighing on the sector's momentum, according to analysts at Elara Securities India. ALSO READ: DMart rises 6%, sees sharpest rally in 10 wks; zooms 14% thus far in March
The brokerage firm said its channel checks have indicated that there has been some slowdown in demand in ULIP products (which were a key growth driver last year), following the recent market correction. ULIP demand, typically, lags equity market performance by 2-3 quarters, suggesting that the weakness may persist through the coming quarters, analysts said.