PB Fintech tumbled 36%, closing at ₹1,150.90 and sinking to a 52‑week low, a loss that dented the company’s market cap by ₹31,430 crore.
The plunge follows IRDAI’s consultation paper that would slash distributor commissions by up to 50%, potentially cutting the non‑life NPV to 33‑40% of its current level.
Jefferies keeps a Buy but cuts its valuation multiple, lowering the target to ₹1,540 and noting a 28% upside from today’s price, while warning of a material earnings hit if the rules go ahead.
Management has signalled slower hiring, trimmed marketing spend and is evaluating an MGA model and credit‑life products to cushion the impact.
PB Fintech will seek clarification on whether the rules apply prospectively; it is also eyeing a potential own‑company launch, while analysts await the next earnings cycle.