PB Fintech, the operator of insurance and loan product aggregator Policybazaar, has received board approval to establish a wholly owned subsidiary for the purpose of conducting payment aggregator business.
The newly proposed subsidiary, PB Pay Private Limited, will operate as a payment aggregator in both domestic and cross-border markets, facilitating merchants with offline and/or digital payment acceptance infrastructure. The company disclosed this information in a regulatory filing, stating that PB Pay Private Limited would operate under the approval of the Reserve Bank of India.
The proposed subsidiary will have a paid-up share capital of Rs 27 crore, subject to regulatory approval.
The process for incorporating the subsidiary will commence upon receiving approval from the relevant authorities, as per the company’s statement.
PB Fintech’s stock reached a fresh 52-week high of Rs 1,048 in early trade on February 1, following a block deal where 2.44 crore shares, equivalent to 5.4 percent equity, were exchanged.
In the December quarter of FY24, PB Fintech reported a profit after tax of Rs 37 crore, driven by strong growth in insurance premiums, improved renewals with higher margins, and enhanced contributing margins. The company also disclosed cash reserves exceeding Rs 5,000 crore.
During the quarter, the insurance aggregator recorded new insurance premiums of Rs 2,400 crore and renewal premiums of Rs 1,900 crore, with renewal premiums having significantly higher margins.
