PB Fintech shares fall up to 8% on announcing a ₹696 crore investment in its healthcare arm

Shares of Policybazaar’s parent firm PB Fintech Ltd. fell as much as 8% on Wednesday, March 12, after the company announced an investment into its newly formed healthcare arm last evening.PB Fintech on Tuesday, March 11 said its board has approved an investment of up to ₹696 crore in its wholly owned subsidiary, PB Healthcare Services Pvt. Ltd., through the subscription or purchase of equity shares and compulsory convertible preference shares (CCPS) during FY 2025-26.
“An investment for an aggregate amount of up to INR 696,00,00,000 (Indian Rupees Six Hundred Ninety Six Crore only) in PB Healthcare Services Private Limited, its wholly owned subsidiary by way of subscribing or purchasing its Equity Shares or Compulsory Convertible Preference Shares during the financial year 2025-26,” PB Fintech said in a regulatory filing.

The investment, subject to shareholder approval via postal ballot, will be made alongside external investors, including Chairman & CEO Yashish Dahiya, Executive Vice Chairman Alok Bansal, and three Key Managerial Personnel (KMPs).Also Read: Santosh Agarwal appointed CEO of Paisabazaar as PB Fintech restructures leadership

“The said investment is, however, subject to the shareholder’s approval through postal ballot and will be made along with other external investors in PB Healthcare Services Private Limited,” PB Fintech said.
PB Healthcare, incorporated in January 2025, operates in the healthcare and allied services sector. The investment aims to support the subsidiary’s operational expenses, enhance its brand presence, and fund strategic initiatives.Following the transaction, PB Fintech will hold up to 33.63% of PB Healthcare’s equity on a fully diluted basis. The acquisition is classified as a related party transaction and will be executed at fair value determined by a Registered Valuer.

PB Fintech’s management will also be acquiring stake in the company:

• Yashish Dahiya, the co-founder of PB Fintech will invest ₹87 crore for a 4.2% stake.
• Alok Bansal, co-founder & Executive Vice Chairman of PB Fintech will invest ₹43.5 crore for a 2.1% stake.
• Sarabvir Singh, Joint Group CEO of PB Fintech, along with Mandeep Mehta and Bhaskar Joshi will hold a 0.11% stake for an investment of ₹2.25 crore.

This will take the total investment in PB Healthcare to ₹828.75 crore for a 40.04% stake. The transaction values PB Healthcare at ₹2,100 crore.Also Read: PB Fintech’s health insurance business growing four times faster than the industry, says Group CEO

In January this year, PB Fintech’s Chairman and Group CEO, Yashish Dahiya, said the company’s health insurance business, which is currently growing four times faster than the industry, is a ‘long-term driver of value for the company’.

Health insurance currently accounts for just over 60% of the company’s net present value (NPV). and slightly more than 30% of the total premium collected.

Shares of PB Fintech are trading 6.7% lower on Wednesday at ₹1,371.2. The stock is down 39% from its peak of ₹2,246.