PB Fintech receives approval to establish payment aggregator division

21 Mar 2024 , 11:17 AM

The online insurance aggregator, PB Fintech, which runs insurance and lending product aggregator Policybazaar, has received approval from the board to establish a fully owned subsidiary to carry on the payment aggregator business.

According to a regulatory filing, PB Pay Private Limited will continue to operate as a payment aggregator for both domestic and cross-border markets, subject to Reserve Bank of India approval, by providing merchants with offline and/or digital payment acceptance infrastructure, or both.

The planned business will have a paid-up share capital of ₹27 Crore, it stated.

The application for the creation of the proposed fully owned subsidiary will be filed and finalised pending permission from the necessary authorities, it stated.

PB Fintech’s stock rose to a new 52-week high of ₹1,048 in early trade on February 1 after 2.44 Crore shares, or 5.4% of the equity, changed hands in a block deal.

The Gurugram-based firm posted a profit after tax of ₹37 Crore for the December quarter of FY24, supported by a strong increase in insurance premiums, improved renewals with higher margins, and improvements in contribution margins.

The corporation declared cash reserves of more than ₹5,000 Crore.

During the quarter, the insurance aggregator’s new insurance premiums totaled ₹2,400 Crore, while its renewal premium, which has a significantly bigger margin, was ₹1,900 Crore.

At around 10.38 AM, PB Fintech was trading 1.84% higher at ₹1,134.65 per piece, against the previous close of ₹1,114.20 on NSE. The counter touched an intraday high and low of 1,151, and ₹1,120.95, respectively.

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