PB Fintech shares plunge 50% from peak, fall below IPO price
Shares of PB Fintech extended their losing streak to a sixth consecutive session on Thursday, slipping another 9.4% to hit a low of Rs 965. The stock has now fallen 50% from its record high of Rs 1,963 and has dropped below its Rs 980 IPO price from 2021. The sharp selloff was triggered by proposed regulatory restrictions from the Insurance Regulatory and Development Authority of India (IRDAI), which unveiled plans to ban 'dark patterns' on insurance websites—practices requiring customers to share personal details before accessing product features and pricing information.
The proposed IRDAI reforms are expected to pressure the economics of insurance distribution. Bernstein recently slashed its target price to Rs 1,085 per share, cutting its FY30 net income estimate to Rs 2,000 crore from Rs 3,200 crore and reducing its FY28 EPS estimate to Rs 24.44 from Rs 35.49. The brokerage noted that lower general insurance take-rates may not cover current costs and expects the POSP business to scale down as the model becomes unviable. Jefferies also reduced its target price to Rs 1,540, estimating that non-life NPV could fall to 33-40% of original levels if IRDAI's proposed commission cuts are implemented. A 10% cut in new business commission rates could translate into a 10-12% decline in earnings, Jefferies said. The regulatory proposal has resulted in an m-cap loss of Rs 42,000 crore for the company over six trading sessions.
