PB Fintech: Has pre-IPO investors lock-in expiry heat on Policybazaar operator doused? Stock jumps 12% intraday – check reasons, target price

Policybazaar, PB Fintech share price: The heat of pre-IPO (Initial Public Offer) investors’ lock-in expiry has likely doused as shares of Policybazaar operator PB Fintech jumped nearly 12 per cent to touch a day’s high-level Rs 447.8 per share on the BSE intraday during Thursday’s trading session.

The buying sentiment in the stock can mainly be attributed to the bulk deals activity witnessed during Wednesday’s session.

In this regard, Capri Global Holdings Private Limited through an open market transaction yesterday bought 13,19,853 equity shares of PB Fintech at the weighted average price of Rs 228.77 per share on the NSE.

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Last week, foreign institutional investor Tiger Global Management dumped nearly 3 per cent of stakes twice in PB Fintech through open market transactions on different days after the anchor lock-in period ended on November 10, 2022. 

The new-gen company’s stock has corrected around 67 per cent in the last one year and over 35 per cent in the last six months. On the contrary, the counter has gained nearly 13 per cent each in the last one month and five sessions.

On Thursday, shares of PB Fintech closed nearly 8 per cent higher to Rs 432.3 per cent on the BSE as against 1.24 per cent rise in the S&P BSE Sensex.

Also Read: Tiger Global offloads nearly 3% stakes in PB Fintech worth Rs 522 crore

With respect to July-September quarter earnings for the current fiscal year, PB Fintech has reported improved numbers, said domestic brokerage firm ICICI Securities.

The brokerage said that PB Fintech’s Q2FY23 performance was good on all counts as premium growth has been encouraging; disbursements too have been good in Paisabazaar; rates increased in the insurance business and lower losses in new initiatives while fixed costs remained range bound.

Besides, the roadmap presented by management is also positive with the aim to reach Rs 8-10 billion in adjusted EBITDA by FY27 and they also remain focused on its target of Rs 10 billion PAT by FY27.

ICICI Securities maintains BUY with a revised target price of Rs 550 apiece from Rs 700 a share factoring in the threat of possible competition from the proposed insurance marketplace. While its FY27E EBITDA remains unchanged and its FY27E valuation multiple reduced to 30x from 38x earlier.