BB Pintech is the parent company of online insurance retailer PolicyBazaar. Its shares have plunged more than 75 percent from their peak, hitting fresh new lows. Similarly, the share price of LIC, a public sector insurance company that came to the stock market a few months ago, has fallen by more than 30 percent.
BP Pintech – 73.5% decline
PB fintech, which has been in decline since the start of trading today (Oct 21), was trading at Rs 374.7 as of 2.45 pm. This is a 6 percent decline from yesterday’s price. And a new drop like never before. Launched in 2008, the company has major subsidiaries namely Policybazaar and Baisabazaar. PolicyBazaar offers life and health insurance online. Lending Company through Baisabazaar Online.
InfoEdge, the parent company of Nakuri, has invested heavily in the company. BP Pintech was listed on the stock exchange on November 15 last year. The list rose more than 15 percent on some days. Although the company’s business model is one that investors like, the company is yet to move towards profitability. Its loss in the first quarter of the current financial year has been Rs.204 crore. Losses more than doubled despite revenue rising 112%. The company is expected to return to profitability in the September quarter of 2023.
But due to poor global economic conditions, investors started moving towards companies with good returns. And investor exit from digital companies in the US also hit BB FinTech. Meanwhile, the lock-in period for foreign venture capital investors who had recently invested in BP FinTech has ended.
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They have 40 lakh shares in their possession. Apart from this, the lock-in period for 2.8 crore shares held by pre-IPO investors ends on November 15. Those who bought shares at a price below their current price. They experienced a decline when the Somato log-in period ended. That fear is also with BB Fintech and they are withdrawing money.
LIC, – 32.7% decline
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LIC, 100 percent shares of the company were held by the central government. Listed on the stock market for sale of 3.5% stake worth Rs 21,000 crore in LIC as part of efforts to monetize government assets. The price per share was fixed at Rs.949. It closed at Rs 872, down 8 per cent on the first day. It has been in decline ever since. It fell 2% to close at Rs 588.95 in today’s (Oct 21) trading hours.
LIC ranks second among companies listed on Asian bourses in 2022 that lost the most market value. The market value, which was Rs.6 lakh crore, has now melted down to Rs.3.7 lakh crore.
Due to government regulation, lack of investor interest in public sector companies, stiff competition from the private sector, outdated business model without digitalization, its shares are stumbling. LIC, which controls 50% of the insurance market, can give its competitors a leg up if it adopts contemporary business methods.
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