PB Fintech has invested Rs 5 crore in its wholly owned subsidiary, PB Marketing and Consulting Private Limited, according to a stock exchange filing by the former company.
As part of the transaction, PB Marketing will issue 50 lakh equity shares with a face value of Rs 10 each to PB Fintech against the investment amount.
Earlier this month, PB Fintech received approval from the Securities and Exchange Board of India (Sebi) for PB Marketing to function as a stockbroker in the debt segment of the National Stock Exchange (NSE).
Following the approval, the subsidiary will be able to carry out stockbroking operations in the debt market, subject to compliance with Sebi guidelines, exchange rules and other regulatory norms.
“This investment will enable PB Marketing to satisfy the minimum net worth threshold required for registration and operation as a depository participant with NSDL (National Securities Depository Limited) or CDSL (Central Depository Services Limited), and for operational requirements,” the Gurugram-based fintech said in the filing.
The company said the deal was completed through a cash consideration and qualifies as a related-party transaction since PB Marketing is a wholly owned subsidiary of PB Fintech. It also stated that the subsidiary will obtain all required regulatory approvals as and when required.
PB Fintech was founded in 2008 by Yashish Dahiya, Alok Bansal, Avaneesh Nirjar, Tarun Mathur and Manoj Sharma. The company is the parent of insurance marketplace Policybazaar and fintech platform Paisabazaar.
For the quarter ended March, PB Fintech posted operating revenue of Rs 2,061 crore , marking a 36% increase from Rs 1,507.8 crore in the same period last year. The growth was mainly driven by a rise in new insurance premium collections, the company’s core business.
Net profit for the quarter rose 54% year on year to Rs 261 crore, from Rs 169 crore a year earlier.
