Bajaj Finserv soars after reports of likely buyout of Allianz's stake in insurance arms

Bajaj Finserv surged 6.7% to Rs 2,212 at 12:00 IST on BSE after reports suggested that the company would likely buy out German based Allianz SE's stake in its life insurance joint venture firms.

Meanwhile, the S&P BSE Sensex was down 20.77 points or 0.08% at 26,376.94.

On BSE, so far 28,753 shares were traded in the counter as against average daily volume of 27,399 shares in the past one quarter. The stock hit high of Rs 2,245.30 in intraday trade, which was also a record high for the stock. The stock hit a low of Rs 2,090 so far during the day. The stock had hit a 52-week low of Rs 1,459.20 on 29 June 2015. The stock had outperformed the market over the past one month till 24 June 2016, rising 17.79% compared with 4.32% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 20.68% as against Sensex's 4.18% rise.

The large-cap company has equity capital of Rs 79.57 crore. Face value per share is Rs 5.

Bajaj Finserv is reportedly likely to buy out its German partner, Allianz SE's stakes in both of their joint venture insurance companies, Bajaj Allianz Life Insurance Company and Bajaj Allianz General Insurance in a deal estimated at as much as Rs 10000 crore. Bajaj Finserv, the financial services arm of Bajaj Holdings and Investments, owns 74% and Allianz SE holds 26% in both the ventures.

The report said that Allianz has been in talks with Bajaj Finserv to increase its stake in the insurance joint ventures to 49% from 26% after the government increased foreign investment limit in the sector to 49% from earlier 26% in March 2015. However, the discussion failed to yield any result as both the parties could not decide on the price, the report added.

Bajaj Finserv's consolidated net profit fell 26.8% to Rs 517.95 crore on 6.7% growth in total income to Rs 2567.18 crore in Q4 March 2016 over Q4 March 2015.

Bajaj Finserv participates in the financing business through its holding in Bajaj Finance and in protection business through its holding in Bajaj Allianz General Insurance Company and Bajaj Alliance Life Insurance Company.

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