New Irdai platform casts a shadow over PolicyBazaar
PB Fintech Ltd, backed by Info Edge and Japan’s SoftBank, got listed on the stock exchanges. Masayoshi Son’s SoftBank holds 4.39%, China’s Tencent 6.28% and Info Edge holds 17.5% in PB Fintech, while Claymore Investments (Mauritius) Pte. Ltd, a subsidiary of Singapore’s Temasek Holdings, own 5.43%.
While a query and several messages sent to PolicyBazaar spokespersons remained unanswered, during its post-earnings analyst call on 8 August, PB Fintech’s executives had said, “It’s (Bima Sugam) a great platform. I think it’ll do really, really well. You know, it’s obviously initiated by the government and by all the insurance companies.
We as part of the idea are also part of it. And we think it’s a phenomenal platform here. It’s a regulator-initiated platform." “PolicyBazaar is aware of the serious risk and is working on a Plan B to combat the imminent challenges, prevent value erosion," said the head of one of the largest general insurers, the second person cited above.
An 8 August report by Macquarie Group sees a target price of `560 for PB Fintech shares, 25% below their current levels, as the Bima Sugam platform could be disruptive, affecting PolicyBazaar’s ‘take rates’ and market share. At Monday’s close of `731.65 per share on the BSE, PB Fintech commanded `33,000 crore in market capitalization. “We believe the company (PB Fintech) faces significant revenue and profitability risks from the regulator’s launch of Bima Sugam, a marketplace that can affect longer-term market share and take rates.
Read more on livemint.com
