PB Fintech shares fall 5% amid Rs 696 crore infusion in healthcare arm

Shares of PB Fintech Ltd. — parent entity of Policybazaar — fell over 5 per cent on Wednesday after it proposed to infuse Rs 696 crore in its subsidiary PB Healthcare Services Private Ltd. in the next financial year. 

 

PB Fintech shares plunged as much as 5.49 per cent in the intraday trade to Rs 1,388.2 per share, the biggest intraday fall since March 3 this year. The stock recovered as the trade progressed and was hovering at Rs 1,400 levels, down 4.6 per cent at 10:55 AM, compared to a 0.41 per cent fall in Nifty 50. The counter has fallen by 33.6 per cent so far in calendar year 2025, following a 165 per cent gain it made in CY-2024.

 

 

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, PB Fintech would be holding upto 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. 

 

The said investment is, however, subject to the shareholder's approval through postal ballot and will be made along with other external investors in PB Healthcare Services Private Ltd., it said. PB Healthcare Services Private Ltd. was incorporated in January 2025 to carry on the business of healthcare and allied services in India.  ALSO READ: Nifty IT tanks 3%; Wipro, Infy slide up to 6% on Motilal Oswal downgrade

 

In its third-quarter update, the company posted an 88 per cent rise in consolidated net profit at Rs 71.54 crore as compared to Rs 38.05 crore a year ago. The company's revenue for the quarter under review stood at Rs 1,291.62 crore, up 48.3 per cent from Rs 870.89 crore a year ago. 

 

Out of the 20 analysts tracking the company, eight have a 'buy', five have a 'hold', and one has a 'sell' call, according to Bloomberg data. Analysts tracked by Bloomberg have a consensus 12-month target price of Rs 5,512, an upside of 40 per cent from current levels.