PolicyBazaar, a leading player in the insurance and financial services sector, has announced that it is expanding its portfolio with the introduction of a wholly owned subsidiary, 'PB Pay Private Limited,' the company announced through an exchange filing.
At a recent board meeting held on Wednesday, March 20, 2024, PolicyBazaar's Board of Directors approved the incorporation of PB Pay Private Limited.
The subsidiary aims to engage in the business of payment aggregation services, both domestically and internationally, subject to approvals from regulatory authorities, particularly the Reserve Bank of India (RBI).
Key Details
PB Pay Private Limited is set to have an authorized share capital of Rs 50,00,00,000 and a proposed paid-up capital of Rs 27,00,00,000.
As a wholly owned subsidiary of PolicyBazaar, PB Pay Private Limited will be considered a related party. However, given PolicyBazaar's status as a professionally managed entity with no identifiable promoter, the transaction is anticipated to be conducted at arm's length.
The subsidiary will operate in the Non-Banking Financial Company (NBFC) sector, specifically focusing on payment aggregation services.
Regulatory approval
Upon incorporation, PB Pay Private Limited will seek necessary approvals from regulatory bodies, particularly the RBI, for acquiring a Payment Aggregator License to commence operations.
Policybazaar will subscribe to 100 per cent of the share capital of PB Pay Private Limited in cash, indicating an investment in the payment aggregation domain.
PB Fintech Limited shares
The shares of PB Fintech Limited on Thursday at 10:27 am IST were trading at Rs 1,135.40, up by 1.90 per cent.
