Shares of Policybazaar parent PB Fintech made a sharp comeback on Thursday after falling in the last two sessions. The stock rose 11.77 per cent to the day’s high of Rs 447.80 from its previous close of Rs 400.65. It finally closed at Rs 432.20, up 7.87 per cent, on the BSE.
A total of 51.97 lakh shares changed hands today, amounting to Rs 211.82 crore. The market capitalization (m-cap) of the company stood at Rs 19,427.38 crore.
Experts attributed today’s rebound largely to insurance regulator IRDAI’s comments on removal of specific cap on commission for agents and “technical bounce back” expected after trading in oversold zone.
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AK Prabhakar, head of capital, IDBI Capital, said: “PolicyBazaar shares jumped in response to IRDAI’s comments. Insurance regulator has released draft norms to remove specific cap on commission to agents. Removal of cap will give more products to insurance companies Selling will help.” This is the reason why PB Fintech (parent of Policybazaar) is also growing.”
The insurance regulator has proposed in a revised draft that the commission payable under general insurance products, including health insurance products offered by general insurers and health insurance products by standalone health insurers, not exceed the ceiling of Expenses of Management (EOM). Should be regulator.
IRDAI has proposed a single management expense cap of 30 per cent of gross premiums written in a financial year in case of general insurers and 35 per cent for standalone health insurers.
Tips2trades’ Pavitra Shetty said, “After heavy losses in all new-age start-up IPOs (including PB Fintech), a tech bounce was expected as these stocks were oversold. Investors can only trade at the daily close.” Can only buy Above Rs 424.5 for a target of Rs 456-472 in the near term.
He said that Rs 400 level will act as a strong support for the stock.
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Most new-age tech stocks, which recently came under intense pressure, recovered some lost ground today in line with positive global trends.
PB Fintech made a decent debut on the exchanges in November last year, listing at Rs 1,150, a premium of 17.35 per cent over the issue price of Rs 980. At the day’s high of Rs 447.80, the stock was down 54.3 per cent on its upside. IPO issue price. It had fallen to a record low of Rs 356.20 earlier this month (17 November).
Meanwhile, Indian equity benchmarks touched record highs for the third straight session led by gains in IT, financial services and energy stocks.
