The agreed consideration for a 26% stake in BAGIC and BALIC is ₹13,780 crore and ₹10,400 crore respectively. The deal marks the end of Bajaj and Allianz’s long-standing partnership and will give the Bajaj Group full ownership of both insurance companies.
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% and reclassification of Allianz from being a Promoter to Investor.
Under the terms of the Share Purchase Agreement, it is proposed that Bajaj Finserv will acquire approximately 1.01%, Bajaj Holdings and Investment Ltd. approximately 19.95% and Jamnalal Sons Pvt. Ltd. approximately 5.04%, aggregating to 26% in each of the insurance companies.
Post-acquisition, Bajaj Finserv’s stake will be 75.01% in both companies. Once the joint ventures are terminated under the terms of the SPA, the Bajaj Group and Allianz aim to independently pursue their insurance strategies in India.
The deal is subject to regulatory approvals, including clearance from the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI). Bajaj Finserv stated that the acquisition will drive long-term value creation and strengthen its position in India’s insurance market.
Shares of Bajaj Finserv Ltd ended at ₹1,871.85, up by ₹64.90, or 3.59%, on the BSE.
First Published: Mar 17, 2025 10:22 PM IST
