On Thursday, the stock of India’s premier online insurance and lending product aggregator company rose by 4.3 percent, reaching ₹1,319.75 per share, following the approval by the company’s board to acquire a stake in a UAE-based insurance broker.
At 3:15 p.m., PB Fintech Ltd. shares were trading at ₹1,298 apiece, up 2.56 percent on the National Stock Exchange, and the company has a market capitalization of ₹59,076 crores.
As per the company’s exchange filing, PB Fintech’s board has given approval for Icall Support Services Private Limited, a wholly-owned subsidiary of the company, to acquire a 100% stake in Genesis Group Limited, a UAE-based firm.
Genesis Group Limited, in turn, holds 49% of Genesis Insurance Brokers LLC. This acquisition is valued at AED 3,877,400 and aims to enhance the company’s product offerings for UAE-based customers.
Presently, Mr. Yashish Dahiya, the CEO of PB Fintech Ltd, owns 100% of YD Holdings Limited, which in turn holds 100% of Genesis Group Limited, which further holds 49% of Genesis Insurance Brokers LLC.
Icall Support Services Private Limited, as a wholly owned subsidiary of PB Fintech Ltd, intends to engage in overseas direct investment to acquire 100% ownership of Genesis Group Limited from YD Holdings Limited.
Genesis Insurance Brokers LLC is a Limited Liability Company registered with the Department of Economic Development in Dubai, United Arab Emirates (UAE), with a deposit of AED 3 million with the DEA. The enterprise value of this acquisition stands at AED 877,400, approximately equivalent to ₹ 2 Crores.
At the same time, the company will sell 293,210 equity shares, which represent 29.30% of the share capital of Visit Health Private Limited (“VHPL”), currently owned by Docprime Technologies Private Limited (“DTPL”), a wholly owned subsidiary of the Company, for ₹76 Crores. The Company will maintain ownership of 122,083 equity shares, totaling 8.20% on a fully diluted basis, in VHPL.
PB Fintech shares gained 85 percent in the last six months and 118 percent in the last 12 months.
PB Fintech Ltd, popularly known as Policy Bazar, is India’s largest online platform for insurance and lending products through its flagship brands – Policybazaar and Paisabazaar, through which they provide convenient access to insurance, credit, and other financial products.
In Q3FY24, PB Fintech Ltd saw a substantial 43 percent year-on-year increase in operational revenue, rising from ₹610 crore to ₹871 crore. Concurrently, the company experienced a notable turnaround in net profit, transitioning from a loss of ₹88 crore to a profit of ₹37 crore during the same period.
Written by Omkar Chitnis
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