PB Fintech shares rally over 7% to hit 52-week high on incorporation of payment aggregator arm PB Pay
Upstox
2 min read • Updated: April 10, 2024, 12:50 PM
Summary
PB Fintech shares have rallied nearly 70% in 2024 so far while in the past year has soared by more than 130% as it expects more than 2-fold jump in growth in coming years.
Shares of PB Fintech Ltd, which owns the policybazar.com portal, rallied more than 7% to touch a year-high on Wednesday, April 10, after the company announced that it has formed a new subsidiary PB Pay Private Limited.
In an exchange filing, PB Fintech stated that it has incorporated a wholly-owned subsidiary of the company by the name of PB Pay Private Limited.
PB Fintech received the certificate of incorporation from the Registrar of Companies, Central Registration Centre, Ministry of Corporate Affairs dated April 9, 2024, as per the filing.
PB Fintech however did not reveal the details of the operations of the new wholly-owned subsidiary or the business it will be involved into.
As per the company's regulatory filing on March 20, its board had approved formation of a wholly-owned subsidiary for carrying out operations as a payment aggregator.
PB Pay Private Limited will engage in the payment aggregator business, either domestically or internationally, or both, the filing had stated then.
PB Pay would provide merchants with offline and/or digital payment acceptance infrastructure.
PB Fintech shares rally more than 7% to hit 52-week high
Following the announcement, PB Fintech shares surged more than 7% to hit a 52-week high of ₹1,400.35 on NSE in morning deals. More than 14 lakh shares of the company changed hands on NSE.
The stock later pared some of the gains to trade 3.5% higher at ₹1,350 apiece on NSE at 11:45 am.
PB Fintech shares have rallied nearly 70% in this year so far due to a host of factors. In the past year the stock has given returns of over 130%.
PB Fintech expects two-fold growth in next few years
The parent company of policybazaar and paisabazaar platforms in January had announced that it was expecting more than two-fold growth in the next few years.
The company had then stressed that it was looking to deepen engagement in current offerings and was not looking to enter new business segments.
PB Fintech’s wholly-owned subsidiary Policybazaar Insurance Brokers in February received approval from insurance regulator IRDAI to elevate its licence to a composite insurance broker from the existing direct insurance broker.
A composite insurance broker can sell reinsurance products along with general and life insurance products.