Bajaj Finserv’s stock experienced a notable decline, dipping 1.8% to reach an intra-day low of Rs 1,837, making it one of the biggest losers on the Nifty 50 index. This downturn follows a significant development where the Bajaj Group entered into a share purchase agreement with Allianz SE to acquire their stakes in joint ventures.
Major Acquisition Deal
In this strategic move, Bajaj Group plans to buy a 26% share in two prominent insurance ventures: Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC). The total cost for this acquisition stands at an impressive Rs 24,180 crore.
- Bajaj Allianz General Insurance: Acquiring 26% for Rs 13,780 crore
- Bajaj Allianz Life Insurance: Acquiring 26% for Rs 10,400 crore
This acquisition will elevate Bajaj Group’s ownership in these insurance entities from 74% to a commanding 100%.
Post-Acquisition Shareholding Structure
Once the acquisition is finalized, Bajaj Finserv will own 75.01% of the total equity in both BAGIC and BALIC. In an official statement, the company mentioned, “Allianz SE has decided to exit the insurance joint ventures and has proposed to sell their entire holdings of 26% equity stake in each venture to the Bajaj Group.”
Q3 Performance Highlights
In the third quarter of FY25, Bajaj Finserv reported a 3% year-on-year increase in net profit, reaching Rs 2,231 crore, compared to Rs 2,157.67 crore from the same quarter the previous year. Additionally, total revenue from operations surged by 10.34%, amounting to Rs 32,041.81 crore, up from Rs 29,038.43 crore in the prior year.
Recent Stock Trends
Over the last five trading days, Bajaj Finserv’s stocks have seen a slight uptick of 1%. However, the stock has faced challenges, falling 3% over the last month and 2.7% over the past six months. Despite these fluctuations, the stock has delivered a robust 17% return over the past year.
In contrast, the benchmark Nifty 50 index has shown a modest increase of 1.3% over the same five-day period, but it has dropped 0.9% in the last month and over 10% in the past six months, with an overall growth of 3% in the last year.
This acquisition marks a pivotal moment for Bajaj Finserv, positioning them for future growth in the competitive insurance market.
