Shares of PB Fintech, the parent company of Policybazaar and Paisabazaar, were gaining on Thursday after a large U.S. firm raised its stake in the Indian tech company.

What Happened: US-based financial services firm Capital Group has increased its stake in PB Fintech by acquiring an additional 6.24% for approximately ₹2,270 crore. This transaction was executed over the last three months in small tranches through open-market purchases.

New World Fund, an investment vehicle of Capital Group, boosted its stake in PB Fintech from 1.67% to 5.89% by purchasing an additional 4.22% stake, equivalent to 1.90 crore shares, for about ₹1,872.16 crore.

Meanwhile, SmallCap World Fund, a venture capital firm under Capital Group, acquired nearly 2.02% stake by buying 91.2 lakh shares for ₹898.23 crore.

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The average price per stock for this transaction was ₹984.6659, based on the stock’s average price since the start of the year, which is significantly below current levels of around ₹1,250 per share.

Capital Group’s affiliates now hold a combined 7.91% stake in PB Fintech. After accounting for Temasek Holding’s exit on February 1, the share of foreign institutional investors (FIIs) in PB Fintech has risen to 48.97% from 46.01% in the previous quarter. Temasek Holding had previously sold its entire 5.42% stake in PB Fintech for ₹2,425 crore.

Recently, PB Fintech announced a partnership with ICICI Lombard to provide insurance solutions to 1 crore customers and incorporated a new subsidiary, PB Pay, to operate as a payment aggregator.

Price Action: PB Fintech’s share price was up 2.59% at ₹1,259.65 in late afternoon trade on Thursday.

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