Bajaj Finserv share price declines as Allianz to sell stake in insurance joint ventures

Bajaj Finserv share price: Shares of financial services major Bajaj Finserv declined on Tuesday, a day after the company signed share purchase agreements to acquire Allianz SE's 26% stake in insurance joint ventures Bajaj Allianz Life Insurance Company (BALIC) and Bajaj Allianz General Insurance Company (BAGIC).

The stock fell 1% to ₹1,852.55 apiece on the National Stock Exchange (NSE) at 9:22 am.

The market capitalisation stands at ₹2,96,045.10 crore.

According to a regulatory filing, this acquisition will increase Bajaj Group's ownership in BAGIC and BALIC to 100% from the present 74%.

"The 24-year-old joint venture agreements between the Bajaj Group and Allianz SE in respect of insurance businesses will stand terminated upon the completion of the first tranche of acquisition of at least 6.1% and reclassification of Allianz from being a promoter to investor," it added.

The acquisition is subject to regulatory approvals, including assent from the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI).

The agreed consideration for a 26% stake in BAGIC and BALIC is ₹13,780 crore and ₹10,400 crore, respectively, the company said.

As per the deal, Bajaj Finserv will acquire 1.01%, Bajaj Holdings and Investment Ltd around 19.95%, and Jamnalal Sons Pvt Ltd approximately 5.04%, taking the total to 26% in each of the insurance companies.

Post-acquisition, Bajaj Finserv's stake will be 75.01% in the two companies. Once the JVs are terminated, the Bajaj Group and Allianz SE will independently pursue their insurance strategies in the country.

"Together with Allianz, we have built two of the strongest insurance companies in India with a combined premium exceeding ₹40,000 crore, while maintaining industry-best solvency margins. We remain committed to creating better access to insurance in India, greater financial resilience, and superior experience for our customers," Sanjiv Bajaj, Chairman and Managing Director (CMD) of Bajaj Finserv, said.

"Given the advantage of a single ownership in both companies, we are confident that the acquisition will become a big driver of value for our stakeholders in the years to come," he added.

The statement made it clear that Bajaj Finserv and Allianz will ensure the continuity of reinsurance and other important services during the transition.