Bajaj Finserv shares rise 2% on acquiring Allianz's 26% stake in insurance JVs for ₹24,180 cr

Shares of Bajaj Finserv, the non-banking financial services arm of Bajaj Group, climbed nearly 2% in opening trade on Tuesday, extending gains for the second straight session. The stock gained momentum today after it signed a deal with Allianz SE to acquire a 26% stake in the two insurance joint ventures - Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC) - for ₹24,180 crore.

Continuing its gaining streak for the second session, Bajaj Finserv shares rose as much as 1.7% to ₹1,905 on the BSE. The NBFC stock opened 1.5% higher at ₹1,899.85 after settling up by 3.6% at ₹1,871.85 on the BSE.

The counter touched its 52-week high of ₹2,029 on September 27, 2024, and a 52-week low of ₹1,419 on June 4, 2024. In the last one year, the stock has risen 17%, while it lost over 2% in six months and nearly 3% in a month. In the calendar year 2025, the counter gained 17%.

Emkay maintains ‘BUY’ rating

Following the deal, Emkay has maintained its ‘BUY’ rating on Bajaj Finserv, with an unchanged target price of ₹2,000, saying that this would result in the Bajaj Group gaining complete control of the insurance entities. From a pure number’s perspective, the deal implied a valuation at ₹53,000 crore for Bajaj Allianz General Insurance Company and ₹40,000 crore for Bajaj Allianz Life Insurance Company, it said in a note.

On the funding of the deal, Emkay said payment of ₹940 crore can be managed from internal accruals and some bridge loans. The major funding arrangements will be required at Bajaj Holdings and Investments that need to pay Allianz ₹18,500 crore.

Bajaj Finserv to buy Allianz's 26% stake in insurance JVs

In an exchange filing last night, Bajaj Finserv disclosed Allianz’s intent to exit insurance joint ventures (JVs) with Bajaj (Bajaj Allianz General Insurance Company Limited (BAGIC) and Bajaj Allianz Life Insurance Company Limited (BALIC). In a meeting on March 17, the board of Bajaj Finserv approved end of the joint ventures with Allianz, subject to necessary regulatory approvals. 

As a result, Bajaj Finserv has proposed to acquire 26% equity stake owned by Allianz in BAGIC and BALIC for a total cash consideration of ₹23,780 crore and ₹1,040 crore, respectively, by promoter and promoter group entity - Bajaj Holdings and Investment Limited and Jamnalal Sons Private Limited.

As per the deal, the company would be acquiring 11,13,295 equity shares of ₹10 each in BAGIC from from Allianz, at a price of ₹4,808.24 per share and 15,22,161 equity shares of ₹10 each in BALIC at a price of ₹2,654.12 per share. This would amount to 1.01% equity stake in each of the companies, together with all rights, title, benefits and interest therein, as per the SPAs executed with Allianz, the release noted.

Following the completion of the acquisition, Bajaj Finserv will be holding 75.01% of the total equity share capital in each of BAGIC and BALIC. The group promoter entities, Bajaj Holdings and Jamnalal Sons will acquire around 19.95% and 5.04% of the paid- up equity capital, respectively, in each of the two insurance companies. 

“Upon acquisition as indicated above, the entire equity share capital in the said two insurance companies will be held by the Company (75.01%) and the said Promoter entities (collectively 24.99%),” the release noted.

“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,” said Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv.

“We remain committed to creating better access to insurance in India, greater financial resilience, and superior experience for our customers. 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 decision to sell is the result of constructive and amicable talks with Bajaj Finserv Ltd. India continues to be one of Allianz’s growth markets, and Allianz will explore new opportunities that strengthen its position in the market and expand its potential to serve not only as an investor but also as an operator,” Allianz SE said in a statement.

The fund proceeds will be deployed to support the company’s strategic ambitions, in particular the reinvestment of sale proceeds into potential new opportunities in India. Allianz will adhere to its capital management policy as updated at the December 2024 Capital Markets Day, which includes a minimum level of distribution of earnings2 alongside the flexibility to fund disciplined deployment, it added. 

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