The parent company of Policybazaar, PB Fintech, saw its stock plummet 70% from its all-time high. On Monday, the share price dropped to Rs 434 per share in what was otherwise a stable market. This financial technology company’s drastic decrease in value is certainly a cause for concern.

The stock of fintech company PB Fintech has continued to drop, reaching its lowest price since its initial public offering on November 15, 2021. In the past seven days, shares have fallen by 12 cents and are currently trading at a price that is 55% lower than their initial listing price.

The PB Fintech Group offers marketing, consulting, and support services for insurance and financial products through their online portal. The stock price dropped slightly despite high trading volumes today, with the overall market showing growth.

Analysts predict that PB Fintech’s float, or the number of shares available for trading on the market, will increase significantly as 28 million additional shares become available in November 2022, and 4 million have already been made available to AIF/FVCI investors. However, the large influx of new supply could lead to fluctuations in share prices if a small number of investors decide to sell on open markets. As seen with food delivery company Zomato, share prices can drop if major shareholders decide to sell, but strong financial results can attract buyers back to the stock.

The majority of PB Fintech’s share capital is available for trading, making it a potentially profitable investment. However, each investor may have their own reasons for holding or selling their shares. Info Edge, the company’s largest shareholder, may choose to continue investing as long as the business remains successful.

In the first quarter of fiscal year 23, PB Fintech’s operational revenue saw a significant increase, doubling from Rs 238 crore to Rs 505 crore. However, this was offset by higher employee and advertising expenses, resulting in an overall increase in the company’s loss from Rs 111 crore to Rs 204 crore. The insurance and Paisabazaar divisions also saw a 59% increase in revenue.

The management team at PB predicts that their core adjusted EBITDA will grow by approximately Rs 150 crore annually over the next three to four years. This growth is expected to be driven by an increase in renewals and improved margins. However, this may result in a slower rate of revenue growth. ICICI Direct analysts also support this prediction.

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