The acquisition, subject to regulatory approvals from the Competition Commission of India and the Insurance Regulatory and Development Authority of India, will increase Bajaj Group's ownership in both companies from 74% to 100%.
The 24-year joint venture agreements between the Bajaj Group and Allianz SE will terminate upon completion of the first acquisition tranche (at least 6.1%) and Allianz's reclassification from promoter to investor. The agreed consideration for the 26% stake is Rs 13,780 crore for BAGIC and Rs 10,400 crore for BALIC.
The acquisition will be divided between Bajaj Finserv (approximately 1.01%), Bajaj Holdings and Investment (approximately 19.95%), and Jamnalal Sons (approximately 5.04%). Post-acquisition, Bajaj Finserv's stake will be 75.01% in both companies. Upon termination of the joint ventures, both the Bajaj Group and Allianz plan to independently pursue their insurance strategies in India.
Sanjiv Bajaj, chairman and managing director of Bajaj Finserv, said, "Together with Allianz, we have built two of the strongest insurance companies in India with a combined premium exceeding Rs 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. 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."
Bajaj Finserv, a leading Indian financial services promoter and an unregistered Core Investment Company, boasts a diverse portfolio encompassing savings solutions, loans, insurance, and investments, serving over 230 million customers through digital platforms and extensive physical locations. Its consolidated net profit increased 3.4% to Rs 2,231 crore on 10.34% rise in total income to Rs 32,041.81 crore in Q3 FY25 over Q3 FY24.
Shares of Bajaj Finserv were down 1.72% at Rs 1839.65.