SEBI Issues Show Cause Notice on PB Fintech’s $2M Investment

Securities and Exchange Board of India (SebI) has sent a show cause notice to Yashish Dahiya, the Chairperson and CEO of PB Fintech Limited. The notice concerns PB Fintech FZ-LLC, Dubai, investing $2 million on November 17, 2022, to buy a 26.72% share in YKNP Marketing Management, a different company. The notice mentions that this investment wasn’t seen as sensitive information because the value of the transaction wasn’t significant.

The company is seeking legal advice to address the show cause notice. PB Fintech ensures this issue won’t significantly affect its finances or operations.

SEBI sent the show cause notice via email on June 5, 2024. The announcement was made after trading hours.

Financial Highlights

For the quarter ended March 31, 2024, PB Fintech reported a net profit of ₹60.19 crore compared to a loss of ₹9.34 crore in the same period last year. Its consolidated revenue for the quarter was ₹1,089.57 crore, a 25.36% increase from ₹869.10 crore reported in the previous year.

In FY 2024, PB Fintech’s profit after tax (PAT) turned around significantly, shifting from a loss of ₹488 crore to a profit of ₹64 crore.

Growth Highlights

In the quarter, PB Fintech recorded a total insurance premium of ₹5,127 crore, translating to an Annual Recurring Revenue (ARR) of ₹20,000 crore for insurance premiums. This growth was primarily driven by increased new health and life insurance businesses. Specifically, the online insurance premium for the fourth quarter of FY 2024 grew by 47% compared to the previous year.

Moreover, the company’s cash position strengthened by ₹259 crore compared to the previous year to reach ₹5,263 crore. This improvement was supported by a 39% year-on-year growth in core online revenue, which amounted to ₹2,375 crore.

About PB Fintech Ltd

PB Fintech Ltd, known as Policy Bazaar, is India’s leading online platform for insurance and lending products. It operates through its flagship brands, Policybazaar and Paisabazaar, offering easy access to insurance, credit, and other financial products.

On June 7, 2024, the share price of PB Fintech Ltd opened at ₹1,271.00, touching the day’s high of ₹1,302.55 as of 01:13 PM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.