IRDAI Regulations will Require Bajaj Finserv to Divide the Allianz Share Transaction
The agreement calls for Bajaj Finserv to purchase around 1.01% of each business, Bajaj Holdings and Investment Ltd. to provide 19.95%, and Jamnalal Sons Pvt. Ltd. to 5.04%, for a total of 26% of both companies.
Bajaj Finserv Ltd stated that it would purchase Allianz’s entire 26% ownership in its joint insurance ventures, Bajaj Allianz General Insurance Company Ltd (BAGIC) and (BALIC), marking the end of a 24-year association.
The Bajaj Group will acquire complete ownership of both insurers through the ₹24,180-crore deal. Bajaj Finserv has committed to paying ₹10,400 crore for BALIC and ₹13,780 crore for Allianz’s share in BAGIC. After Allianz is reclassified from “Promoter” to “Investor” and the first tranche, which includes at least 6.1%, is finished, the long-standing joint venture agreements will be terminated.
The agreement calls for Bajaj Finserv to purchase around 1.01% of each business, Bajaj Holdings and Investment Ltd. to provide 19.95%, and Jamnalal Sons Pvt. Ltd. to 26% of both companies. Bajaj Finserv’s ownership in BAGIC and BALIC would increase to 75.01% after the acquisition, strengthening its position in the insurance industry.
The business stated that regulatory clearances, including those from the (IRDAI) and the Competition Commission of India (CCI), are required for this transaction. As the collaboration ends, Bajaj Group and Allianz plan to pursue separate growth avenues in India’s growing insurance sector. According to Bajaj Finserv, the agreement will “strengthen its position in India’s insurance market” and “drive long-term value creation.” On the BSE, shares of Bajaj Finserv Ltd. ended the day higher at ₹1,871.85 each, up ₹64.90 or 3.59%.
