PB Fintech Ltd., a financial services platform has invested an additional sum of ₹350 crore in its wholly-owned subsidiary Policybazaar Insurance Brokers Pvt. Ltd.
The investment in the Gurugram-based subsidiary was done at an arm's length basis, the company said in an exchange filing.
PB Fintech said that the current investment will allow Policybazaar to strengthen its financial health, meet general operating expenses and enhance brand awareness, office presence and strategic initiatives.
The funds will be infused in one or more tranches across financial year 2024 and 2025. The investment has been made at a price of ₹603 apiece, post which, 58 lakh shares of Policybazaar have been allotted to the parent company.
In December 2021, PB Fintech had announced that it will invest up to ₹700 crore in Policybazaar in one or more tranches during financial year 2022 and 2023. It also announced an investment of ₹230 crore in Paisabazaar Marketing and Consulting Pvt. Ltd., a digital marketplace for consumer credit.
In a clarification issued to the exchanges on September 11, PB Fintech mentioned that it has no intentions of becoming a direct insurer or applying for such a license, emphasising its commitment to maintaining a harmonious relationship with existing insurance partners.
CNBC-TV18 had reported that PB Fintech is looking at bringing some significant diversification into its business lines.
Having listed two years earlier in November 2021, PB Fintech's shares are trading close to their 52-week high of ₹846.5, but continue to remain below its issue price of ₹980.
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