Bajaj Finserv Completes Acquisition of Remaining 50% Stake in BFDL from Allianz SE

Bajaj Finserv Limited has completed its strategic acquisition of the remaining 50% equity stake in Bajaj Financial Distributors Limited (BFDL) from Allianz SE, marking the end of their joint venture partnership. The transaction was finalized on January 16, 2026, following the share purchase agreement executed in March 2025. Transaction Details The acquisition involved the purchase of 12,00,000 equity shares of ₹10.00 each, representing the remaining 50% equity stake in BFDL. The transaction details are summarized below: Parameter: Details Shares Acquired: 12,00,000 equity shares Face Value per Share: ₹10.00 Equity Stake: 50% Purchase Consideration: ₹12.50 crores Transaction Date: January 16, 2026 Current Ownership: 100% Joint Venture Termination With the completion of this acquisition, the Joint Venture Agreement between Bajaj Finserv Limited and Allianz SE regarding BFDL has been officially terminated with effect from January 16, 2026. This strategic move transforms BFDL from a 50:50 joint venture into a wholly-owned subsidiary of Bajaj Finserv. The transaction was executed pursuant to the share purchase agreement dated March 17, 2025, which was entered into among Bajaj Finserv Limited, Allianz SE, and BFDL. The acquisition includes all rights, title, benefits, and interests associated with the equity stake. Subsidiary Structure Impact The acquisition has created a cascading ownership effect within the corporate structure. Bajaj Staffing Solutions Limited (formerly known as Bajaj Allianz Staffing Solutions Limited), which was previously a wholly-owned subsidiary of BFDL, has now become an indirect wholly-owned subsidiary of Bajaj Finserv Limited. This restructuring provides Bajaj Finserv with complete operational control over both BFDL and its subsidiary operations, eliminating the need for joint decision-making processes that were previously required under the joint venture arrangement. Regulatory Compliance The company has fulfilled its disclosure obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transaction was communicated to both BSE Limited and National Stock Exchange of India Limited on the completion date, ensuring full transparency with stakeholders and regulatory authorities. Bajaj Finserv has successfully completed the acquisition of Allianz SE's 23% stake in its insurance subsidiaries, marking the end of a 24-year joint venture partnership. The transaction, valued at ₹21,390 crores, represents the largest deal ever executed in India's insurance sector and ranks among the most significant global joint venture buyouts by an Indian corporate group. Transaction Details The acquisition was executed jointly by Bajaj Finserv, Bajaj Holdings & Investment Limited, and Jamnalal Sons Private Limited. The deal structure involved separate purchases for each insurance entity: Insurance Company Acquisition Cost Implied Valuation Bajaj Allianz General Insurance ₹12,190 crores ₹53,000 crores Bajaj Allianz Life Insurance ₹9,200 crores ₹40,000 crores Total Transaction Value ₹21,390 crores ₹93,000 crores Ownership Structure Changes With this acquisition, the Bajaj Group's ownership in both insurance companies has increased significantly from 74% to 97%. Bajaj Finserv now holds complete control with a 75.01% stake in the insurance operations. The remaining 3% stake held by Allianz is expected to be transferred in the coming months through a proposed share buyback by the insurance companies, subject to regulatory and statutory approvals. Post-buyback, the ownership structure will be restructured as follows: Entity Expected Ownership Bajaj Finserv 77.30% Bajaj Holdings & Investment Limited 18.10% Jamnalal Sons Private Limited Balance stake Market Valuation and Analysis The acquisition implies aggregate valuations that are notably lower than earlier analyst estimates. Investment firms including Jefferies, Avendus, and Kotak had previously estimated higher valuations: General Insurance: Analyst estimates ranged from ₹54,600 crores to ₹85,700 crores Life Insurance: Analyst estimates were between ₹56,200 crores to ₹56,800 crores The actual transaction valuations represent a more conservative assessment of the insurance businesses' worth. Financial Performance Bajaj Finserv has demonstrated strong financial performance in recent quarters. The company reported significant growth in Q2 FY26 compared to Q2 FY25: Financial Metric Q2 FY25 Q2 FY26 Growth Rate Revenue from Operations ₹33,704 crores ₹37,403 crores +11.00% Net Profit ₹4,180 crores ₹4,746 crores +13.54% Strategic Implications The company has clarified that this acquisition will not impact day-to-day operations or affect the interests of policyholders, distributors, or business partners. The transaction stems from a Share Purchase Agreement signed on March 17, 2025, where the Bajaj Group announced its intent to raise ownership in both insurers to 100%. Following Allianz Group's exit from the Bajaj partnership, Allianz entered into a new strategic alliance. On July 18, 2025, Jio Financial Services Limited and Allianz Group, through its subsidiary Allianz Europe B.V., formed a binding agreement for a 50:50 domestic reinsurance joint venture. Company Profile Bajaj Finserv operates as an unregistered Core Investment Company and stands as one of India's leading promoters of financial services businesses. The company's comprehensive suite of financial solutions encompasses consumer and commercial loans, mortgages, auto financing, fixed deposit products, payments, securities brokerage services, general and life insurance, and investment products, with significant emphasis on digital platform distribution. We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better. Stock Markets are the true indicator of the growth of any country's economy. We are bullish on India, we are bullish on India's prospects to be one of largest economies of the world. We believe that Stock Markets provide an unique opportunity for all Indians to participate in the growth story of India. We are enabling the same for Indians. 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