PB Fintech shares on a wild swing on plans of healthcare foray

PB Fintech stock went on a rollercoaster ride on Thursday, falling up to 10% before recovering to close at ₹1,694.95 on the BSE, down 1.6% from Wednesday's close, amid reports that the company is looking to launch a chain of hospitals. So, what caused this wild swing in a stock that has been one of the star performers?

Unlike many other tech stocks, shares of PB Fintech, parent of online insurance and lending marketplaces PolicyBazaar and Paisabazaar, performed very well over the last one year, buoyed by financial profits and overall growth of the business. Consider this: about a year ago, the stock was trading around ₹760. It rose more than 150% since then when it hit a 52-week high of ₹1,966 last week.

Understanding the stock movement: There was selling pressure on the stock after a CNBC-TV18 news report said the Gurgaon-based company could get into the healthcare business with its own hospital chain.


Late evening on Wednesday, PB Fintech issued a clarification to the stock exchanges saying it is evaluating some opportunities in the healthcare space but nothing has been finalised. Industry insiders pointed out that investors were spooked at the fact that the fintech that runs an insurance and credit marketplace wants to get into the healthcare business which is fragmented, has high operational costs and faces extreme competition.

(For full report, go to www.economictimes.com)