PB FinTech Shares Drop amid Leadership Changes and GST Raid

PB FinTech stock remains really volatile in this period, even as their several performance reports have been good. At the same time, they have witnessed leadership changes and a GST raid.

Shares of PB FinTech, which is the parent company of the insurtech leader Policybazaar, declined by almost 4% during the intra-day session on February 28 before hitting an eight-month low of INR 1,443.50. Subsequent recovery prompted with closing values of INR 1,465.95 down by 2.4% as compared to the previous day.

The fall was on the back of leadership changes at its subsidiaries. Naveen Kukreja has resigned from the post of CEO at Paisabazaar; he is replaced by Santosh Agarwal, Chief Business Officer at Policybazaar. Ashutosh Mishra, CFO of Policybazaar Insurance Brokers, also resigned and in his place, Vivek Audichya, ex-CFO of Paisabazaar has been appointed. Neeraj Tripathi will hold the position of Paisabazaar CFO.

The insurtech-as-well-as-FinTech giant currently has to deal with some legal charge against it originating from the raid by the GST department on its subsidiary, PB Partners, which had dealings with insurance agents. As per the sources, the said raid linked vendor-related issues to the company.

Despite these challenges, PB FinTech's financial statements remain robust, with consolidated profit after tax (PAT) for Q3 FY25 increasing by 92% from the previous year. Operating revenue also grew by 48%. Currently, the market cap of this company is INR 67,051.56 crore or about $7.67 billion.

From all-time highs achieved in the first week of January, shares of PB FinTech are now down over 23%. This speaks of the investor's uncertainty in the increasingly fluctuating market of FinTech.