Why Bajaj Finserv shares slipped 2% in trade on March 18? Details

The deal strengthens Bajaj Finserv's control, enhances strategic flexibility, and positions it for long-term growth in expanding insurance market, ICICI Securities said in a note.

Bajaj Finserv share price: Shares of Bajaj Finserv were down 2 per cent, at Rs 1,836.15 on the BSE in Tuesday’s intra-day trade on profit booking after the company announced that it will buy Allianz's 26 per cent stake in its insurance joint ventures (JVs) with the company, for Rs 24,180 crore. The stock is down 4 per cent from its intraday high of Rs 1,905. In comparison, the BSE Sensex was up 1 per cent or 753 points at 74,922, at 10:13 AM.

 

On Monday, Bajaj Finserv had rallied 4 per cent. Thus far in the calendar year 2025, the stock has outperformed the market by surging 17 per cent, as against the 4.5 per cent decline in the benchmark index.

 

Bajaj Finserv on Monday said it has signed share purchase agreements (SPAs) with Allianz SE to acquire a 26 per cent stake in the two insurance joint ventures—Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC)—for Rs 24,180 crore.

 

Post the acquisition, Bajaj Group’s stake in the two insurance ventures will go up to 100 per cent from 74 per cent currently. Bajaj Group will acquire the 26 per cent stake in BALIC for Rs 10,400 crore and in BAGIC for Rs 13,780 crore.

 

Bajaj Finserv will hold 75.01 per cent, with Bajaj Holdings (19.95 per cent) and Jamnalal Sons (5.04 per cent) holding the rest. This ending of their joint venture allows both the groups to pursue independent strategies.

 

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 per cent and reclassification of Allianz from being a Promoter to Investor.

 

Given the advantage of a single ownership in both companies, Bajaj Finserv’s management is confident that the acquisition will become a big driver of value for its stakeholders in the years to come.

 

The deal strengthens Bajaj Finserv's control, enhances strategic flexibility, and positions it for long-term growth in an expanding insurance market, ICICI Securities said in a note.

 

Bajaj Finserv (the holding company) and its subsidiaries, joint ventures and associates are primarily engaged in the business of promoting a broad range of financial services, such as financing, insurance, investments, healthcare, technology services, digital healthcare platforms, stock broking, etc.; it also includes distribution of these services using digital platforms.

 

Bajaj Finserv continued to grow its emerging businesses, which include Bajaj Finserv Health, Bajaj Finserv Direct, Bajaj Finserv Asset Management and Bajaj Finserv Ventures. Losses from these businesses for Q3FY25 were Rs 95.0 crore (as against Rs 105. crore in Q3FY24), which is within the company’s plan, according to brokerage firm KRChoksey Shares and Securities.

 

Bajaj Finserv reported a steady performance in Q3FY25, supported by strong growth in its lending businesses (Bajaj Finance & Bajaj Housing Finance), while its insurance subsidiaries faced regulatory and competitive challenges. BAGIC’s margins were impacted by higher Motor TP loss ratios and health insurance pricing regulations. 

 

Meanwhile, BALIC continued its focus on high-margin protection and ULIP products, though new business premium growth remained subdued. With a strategic emphasis on technology-driven financial services, expansion in health and asset management, and a disciplined capital allocation approach, Bajaj Finserv remains well-positioned for long-term growth, the brokerage firm had said in the Q3 result update.