PB Fintech stumbles 5% as Policybazaar’s parent faces tax scrutiny.

TL;DR:

Shares of PB Fintech Ltd, the parent company of Policybazaar and Paisabazaar, fell 5% after reports emerged that the income tax department plans to begin assessment proceedings against the company for regulatory lapses and KYC non-compliance. Income tax officials had conducted a survey of Paisabazaar Marketing and Consulting Private Limited, a subsidiary of PB Fintech, in December 2023.

In a statement, PB Fintech said that there was no new update in the matter and that the company would continue to provide any further information required by the income tax department. The stock fell 4.72% following the news. Recently, Temasek Holdings sold its entire stake in PB Fintech for INR 2,425 crore.

Keynote Capitals revised its earning estimates for PB Fintech and suggested a target price of INR 1,147. The brokerage highlighted factors such as renewal commission growth, strategic expansion into tier-2/3 cities, and cost management as potential catalysts for the company’s future growth.

Source: Business Today