Synopsis
Bajaj Finserv shares fell 0.53% to Rs 1,842 on the NSE, marking a 4% decline over six months. This follows the company's acquisition of Allianz SE’s 26% stake in Bajaj Allianz General and Life Insurance for Rs 24,180 crore. The deal awaits regulatory approval, aiming for full ownership to enhance growth prospects.Key Takeaways
- Bajaj Finserv shares down 0.53% to Rs 1,842.
- 4% decline over the past six months.
- Acquisition of Allianz SE’s 26% stake for Rs 24,180 crore.
- Full ownership to unlock growth opportunities.
- Regulatory approvals pending for the deal.
Mumbai, March 21 (NationPress) The shares of Bajaj Finserv experienced a further decline on Friday, dropping by 0.53 percent during intra-day trading, to reach Rs 1,842 on the National Stock Exchange (NSE).
In the past five days, the stock has seen a decrease of over one percent, nearly 2 percent in the last month, and more than 4 percent over the last six months.
This downturn follows the recent announcement of the company's decision to purchase Allianz SE’s 26 percent stake in Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance for Rs 24,180 crore ($2.83 billion).
Upon completion of this transaction, Bajaj’s ownership stake in both insurance companies will increase from 74 percent to 100 percent, marking the conclusion of a 25-year partnership with the German insurer.
Bajaj Finserv plans to allocate Rs 13,780 crore for acquiring the general insurance business and Rs 10,400 crore for the life insurance division.
The completion of this deal is pending regulatory approvals from the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (IRDAI).
Sanjiv Bajaj, the chairman and managing director of Bajaj Finserv, emphasized that the long-standing relationship with Allianz has helped maintain robust solvency margins and achieve over Rs 40,000 crore in premium collections.
He is optimistic that complete ownership of these insurance businesses will pave the way for new growth prospects.
Meanwhile, Allianz reaffirmed its dedication to India and intends to reinvest the proceeds from this transaction into new opportunities that align with the country’s vision of "Insurance for All by 2047".
From a financial perspective, Bajaj Finserv recorded a 3 percent increase in consolidated net profit for Q3 FY25, amounting to Rs 2,231 crore, compared to Rs 2,158 crore during the same period last year.
The company's operational revenue grew by 10 percent to Rs 32,042 crore in Q3, up from Rs 29,038 crore in the corresponding period last fiscal year.
On another note, Bajaj Finance Limited, a subsidiary of Bajaj Finserv Limited, reported an increase in gross non-performing assets (GNPA) in Q3 to 1.12 percent from 0.95 percent a year ago, while net non-performing assets (NNPA) rose to 0.48 percent from 0.37 percent.
Furthermore, loan loss provisions saw a significant rise, reaching Rs 2,043 crore compared to Rs 1,248 crore in the same period last year.
