PB Fintech said it will later file an application to launch the new healthcare-focused entity.
This comes two months after group CEO Yashish Dahiya said PB Fintech would make a one-off investment of $100 million to acquire a 30% stake in a new healthcare venture.
The insurance company reported a net profit of INR 51 Cr in Q2 FY25 compared to a net loss of INR 21.11 Cr in the year-ago period.
Insurtech major PB Fintech has received approval from its board of directors to form a new subsidiary to offer healthcare services.
“…The Board of Directors of PB Fintech Limited, through a circular resolution passed on December 3, 2024, approved the incorporation of the wholly owned subsidiary…to carry out the healthcare services business,” the insurance-technology major in a filing with the ESB. .
PB Fintech also said it would later file an application to launch the new healthcare-focused entity, adding that the incorporation process would be completed after approval from relevant authorities.
The listed insurance platform, along with other nominees of the company, will initially subscribe to 50,000 shares of the new entity with a face value of INR 10 each.
This comes two months after PB Fintech Group Chairman and CEO Yashish Dahiya said the company was planning to foray into healthcare and would make a one-time investment of $100 million to acquire a 30% stake in a new healthcare company.
At the time, he spoke about issues surrounding the affordability of healthcare in the country for middle-class families. He said PB Fintech would seek to bridge the gap between hospitals and insurance companies.
However, the markets reacted strongly to this announcement. The stock fell 10% in intraday trading on September 26 after Dahiya hinted at the company’s new experiment. However, shares rebounded sharply on September 30 after he officially confirmed the development in a publication.
Meanwhile, brokerage Bernstein earlier expressed caution over PB Fintech’s healthcare plans, saying the foray would be a “step change from the company’s current asset-focused model.” light, towards a space richer in active ingredients”.
Financially, PB Fintech continues to increase its profits. THE the company reported a net profit of INR 51 Cr in the second quarter (Q2) of the financial year 2024-25 (FY25), compared to a net loss of INR 21.11 Cr in the year-ago period. Operating revenue jumped over 43% to INR 1,167.2 Cr during the quarter under review, compared to INR 811.6 Cr in Q2 FY24.
Shares of the company ended Tuesday’s trading session (December 3) down 1.91% at INR 1,927.30 on the BSE.