PB Fintech Shares Down Nearly 10% Since Rs 696-Crore Investment Announced For Healthcare Arm
PB Fintech's stock was trading 5.4% lower, a day after it fell by 4.3% after announcing capital infusion into its healthcare arm.
Shares of PB Fintech Ltd., the parent of insurance aggregator PolicyBazaar, were down over 5% on Thursday, thereby extending the losses over the past two days to nearly 10%.
The stock's slide came after the company, post market hours on Tuesday, announced an investment of Rs 696 crore into PB Healthcare Services Pvt., its wholly-owned subsidiary.
The capital infusion would be carried out in the next financial year through subscription or purchase of shares or compulsory convertible preference shares, an exchange filing stated.
The investment will be aimed at meeting PB Healthcare's general operating expenses, enhancing brand awareness and strategic initiatives, it added.
The disclosure failed to enthuse the market, with several investors heading to sell counters. On Wednesday—the trading session immediately following PB Fintech's disclosure of capital infusion plans—the scrip slipped by 4.3% to settle at Rs 1,405.7 apiece on the National Stock Exchange.
PB Fintech Share Price
The slump continued in the trading session on Thursday, with the stock trading 5.47% lower at Rs 1,328.85 on the NSE at 12:32 p.m., compared to a 0.15% decline in the benchmark Nifty 50.
The current market price was nearly 9.54% lower as against the closing price on Tuesday, before the investment plan for the healthcare arm was announced.
The stock's relative strength index stood at 66.47, whereas the total traded volume so far in the day was at 1.8 times the 30-day average.
Out of 20 analysts tracking the company, eight have a 'buy' rating on the stock, three recommend a 'hold', and nine suggest 'sell', as per Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 31.6%.
