Policybazaar shares rally 8% today. Here's why

Before trading flat later in the day, shares of Policybazaar, which is run by , rallied as much as 8 per cent to hit the day's high at Rs 553.95 on August 25, 2022.

On August 24, 2022, the new-age company announced incorporation of a subsidiary in Abu Dhabi and investment of Rs 250 crore in Paisabazaar and Rs 650 crore in Policybazaar.

"The proposed new company to be incorporated will be a wholly-owned subsidiary of PB Fintech FZ-LLC with the minimum share capital of AED 300,000 and having its registered office in Abu Dhabi, UAE. Its core objective inter-alia will be to extend the group's technology hub in UAE and provide end-to-end tech solutions," PB Fintech had said in an exchange filing.

It said through this technology hub, it will be easier for insurers to integrate with Policybazaar.ae business, bringing in direct benefits into the core business.

The company currently holds a 100 per cent stake in Paisabazaar and it will invest Rs 250 crore in the subsidiary during FY22-23 to meet its general operating expenses and enhance brand awareness, office presence and strategic initiatives.

Shares of PB Fintech have lost around 46 per cent of it their value so far in the year but analysts' targets suggested an upside potential of up to 98 per cent.