PB Fintech shares pare losses after falling nearly 2%; Here is why

Shares of PB Fintech, the company which operates PolicyBazaar, recovered most of its losses after falling as much as 1.88% to hit an intraday low of ₹1,551 on the National Stock Exchange (NSE) on Tuesday, July 7.

Temasek-backed Macritchie Investments pared around 2.2% stake in PB Fintech through an open market transaction worth ₹1,632.98 crore.

The Macritchie Investments offloaded around 1.02 crore shares of the company at an average price of ₹1,604.12 apiece.

Last week, PB Fintech informed exchanges that it made an investment of ₹13 crore in PB Pay Private Limited, a wholly owned subsidiary of the company.

The deal fell in the category of related party transaction as it held 100% stake in PB Pay and was done at an arm's length.

The company is in business of online payment aggregation and the capital has been infused to support business expansion and/or to meet the capital adequacy/net worth criteria mandated by the Reserve Bank of India (RBI) for operating as a payment aggregator, PB Fintech said in an exchange notification.

PB Fintech's net profit in March quarter rose 54% to ₹261 crore and its revenue from operations advanced 37% to ₹2,061 crore.

Its total insurance premium rose 46% and protection premium advanced 67% in March quarter but its lending disbursal declined 32%.

PB Fintech is the parent entity of Policybazaar, India's leading online platform for insurance and lending products. The company provides convenient access to insurance, credit, and other financial products and aims to create awareness in India about the financial impact of death, disease, and damage.

As of 11:24 am, PB Fintech shares recovered most of their losses and traded 0.02% lower at ₹1,581, outperforming the NIFTY Midcap 50 index which was down 0.22%.

Disclaimer: This article is purely for informational purposes and should not be considered investment advice from Upstox. Please consult with a financial advisor before making any investment decisions.