PB Fintech jumps after brokerage upgrade

PB Fintech jumped 5.98% to Rs 771.50, following a stock upgrade by a foreign brokerage.

According to the media reports, the global brokerage firm upgraded shares of PB Fintech to 'overweight' post a sharp correction in the stock although it said that "risks to growth and capital costs for insurance companies are rising".

PB Fintech was listed on the stock exchanges on 15 November 2021 at Rs 1150, a premium of 17.35% to the issue price of Rs 980. The initial public offer (IPO) of PB Fintech received was subscribed 16.58 times. The issue opened for bidding on 1 November and it closed on 3 November. The price band of the IPO was fixed at Rs 940-980 per share.

Shares of PB Fintech have rallied 11.30% in two sessions. The stock is currently down about 21% from the IPO price. It hit a record high of Rs 1,470 on 17 November 2021 and a record low of Rs 618.05 on 24 February 2022.

Policybazaar & Paisabazaar are the flagship platform of PB Fintech and are India's largest online platform for insurance and lending products according to Frost & Sullivan.

In Fiscal 2020, Policybazaar was India's largest digital insurance marketplace among all online insurance distributors with 93.4% market share based on number of policies sold.

Paisabazaar was India's largest digital consumer credit marketplace with a 53.7% market share, based on disbursals in Fiscal 2021. It is also widely used to access credit scores.

On a consolidated basis, PB Fintech reported net loss of Rs 298.02 crore in Q3 December 2021, higher than net loss of Rs 19.59 crore in Q3 December 2020. Net sales rose 73.19% to Rs 367.28 crore in Q3 December 2021 over Q3 December 2020.

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