• PB Fintech shares fell nearly 10% over two sessions following its announcement to invest ₹696 crore in PB Healthcare Services, pending shareholder approval.
  • The investment aims to support operational expenses, brand visibility, and strategic initiatives, with PB Fintech set to hold up to 33.63% in the subsidiary.

PB Fintech Ltd shares continued to decline for the second consecutive session following the company's announcement of a ₹696 crore investment in its healthcare subsidiary, PB Healthcare Services.

The stock fell 5.13% to an intraday low of ₹1,333.5 on the NSE, extending its total losses to nearly 10% over two sessions. On Wednesday, the stock had closed 4.31% lower.

The company plans to infuse the capital into PB Healthcare Services during the financial year 2025-26 through the subscription or purchase of equity shares and compulsory convertible preference shares (CCPS).

The investment, subject to shareholder approval via a postal ballot, aims to support general operating expenses, expand brand visibility, and fund strategic initiatives.

PB Healthcare Services, incorporated in January 2025, operates within India's growing healthcare and allied services sector. The capital infusion will be executed alongside investments from PB Fintech's top leadership, including Chairman and CEO Yashish Dahiya, Executive Vice Chairman Alok Bansal, and three Key Managerial Personnel (KMPs). The total investment, including personal contributions, is expected to reach ₹828.75 crore.

Commenting on the move, Nilesh Shah of Envision Capital told CNBC-TV18, announcement of healthcare expansion

Upon completion of the investment, PB Fintech is expected to hold up to 33.63% of PB Healthcare Services on a fully diluted basis, assuming the maximum investment amount is realized. The company emphasized that the funds would be used for operational needs, brand-building, office expansion, and strategic growth initiatives.

PB Fintech primarily operates policybazaar.com and paisabazaar.com, providing online marketing, consulting, and support services for the financial services sector, including insurance.

The stock decline follows the company’s strong financial performance in Q3 FY2024. On a consolidated basis, PB Fintech’s net profit surged 88.02% to ₹71.54 crore, while net sales increased 48.31% to ₹1,291.62 crore compared to the same quarter in the previous year. Despite these gains, investor sentiment remains cautious following the announcement of healthcare expansion.

Edited by Harshajit Sarmah