Policybazaar parent PB Fintech rebounds 7.87 pc to Rs 432 crore

After slipping in the previous two sessions, PB Fintech, the parent of Policybazaar, staged a rebound on Thursday. The stock had risen by 11.77 per cent to hit a day high of Rs 447.80 from its previous close of Rs 400.65. It settled on the day at Rs 432.20 on the BSE, up 7.87 per cent.

A total of 51.97 lakh shares were changed hands on the day, which was a turnover of Rs 211.82 crore. The company's market capitalisation m-cap was Rs 19,427. 38 crore.

Experts attributed today's rebound to insurance regulator IRDAI's comments on the removal of specific caps on commissions to agents and an expected technical bounce back after trading in the oversold zone.

Shares of Policybazaar surged after IRDAI's comments, according to AK Prabhakar, Head of Capital, IDBI Capital. The insurance regulator has issued draft norms to remove certain caps on commissions. The cap removal would help insurance companies sell more products, which is why PB Fintech Policybazaar's parent is also rising. The insurance regulators have proposed that the commissions payable under general insurance products, including health insurance products by general insurers and health insurance products by standalone health insurers, not exceeding the expense of management EoM limits specified by the regulators.

IRDAI has proposed a single management expense limit of 30 per cent of gross premium written in a financial year in the case of general insurers and 35 per cent for standalone health insurers.

Pavitraa Shetty, from Tips 2 trades, said after a massive fall in all the new age start-up IPOs including PB Fintech a technical bounce back was expected as these stocks had become very oversold. In the near term, investors can only buy if they have a daily close of above Rs 424.5. She said that the Rs 400 level would act as strong support for the stock.

Citi sees Paytm at Rs 1,055 even as the stock falls to new low. Many of the new-age tech stocks, which came under intense pressure recently, recovered some lost ground in line with the positive global trend.

PB Fintech made a good debut at the exchanges in November of last year, listing at Rs 1,150, a premium of 17.35 per cent over its issue price of Rs 980. The scrip was down 54.3 per cent over its IPO issue price at the day's high of Rs 447.80. In November 17 it plunged to a record low of Rs 356.20 while Indian equity benchmarks surged for the third straight session to hit record closing highs, led by gains in IT, financial services and energy stocks.