PB Fintech to buy up to 30% stake in healthcare venture paying $100 mn: Report

PB Fintech Chairman and Group CEO Yashish Dahiya has shed light on the company’s plan to invest in the healthcare space. The company intends to make a one-time investment of up to $100 million for a 20-30 per cent stake, and will not provide further recurring funding, Dahiya told CNBC-TV18 in an interview. The announcement has boosted the company’s stock price by 3.5 per cent. “This will be a one-time investment. We don’t intend to make a recurring investment in the healthcare company,” he told the news channel. 
Dahiya revealed plans to acquire a 20-30 per cent stake in the venture, with a potential investment of up to $100 million, pending board approval.
The stock climbed to ₹1,700 in morning trading, representing a 3.5 per cent increase from the previous close. This positive movement follows a period of decline, during which PB Fintech’s shares had fallen by 15 per cent over the past five trading sessions.
Dahiya explained the rationale behind the company’s foray into healthcare, stating, “A middle-class person can’t afford a bed for ₹78,000 per night. We are looking to bridge the trust gap between hospitals and insurance companies.”
He added that the new healthcare entity is expected to generate its own resources for growth and may attract investments from private equity firms and other financial institutions.
This clarification comes on the heels of comments made last week by Alok Bansal, Co-Founder and Executive Vice Chairman of PB Fintech. Bansal had emphasised the company’s commitment to entering the healthcare sector, citing its importance for the middle class and alignment with the company’s broader financial inclusion goals.
The investment strategy has elicited mixed responses from market analysts. Bernstein, a brokerage firm, maintained an “outperform” rating on PB Fintech with a price target of ₹1,760. They noted that while investors are drawn to the company’s high growth potential and robust business model, some may view this move into healthcare as a departure from its typically capital-light approach, which could be impacting the stock’s performance.
Despite the recent fluctuations, PB Fintech’s stock has shown strong performance overall in 2024, doubling in value. However, it closed 3 per cent lower on Friday at ₹1,632, marking its fifth consecutive day of decline.