Bajaj Finserv Restructures ₹24,180 Crore Allianz Stake Buyout to Meet IRDAI Norms

Bajaj Finserv has strategically structured its ₹24,180 crore acquisition of Allianz SE's 26% stake in their insurance joint ventures to comply with IRDAI regulations. The company will directly acquire only 1.01% in each firm, while Bajaj Holdings & Investment and Jamnalal Sons will purchase the remaining stake. This move ensures compliance with insurance rules barring stake acquisitions via borrowed funds. Post-acquisition, Bajaj Finserv will hold 75.01% in both Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance. The deal, expected to close in 15 months, values the general insurance arm at ₹53,000 crore and the life insurance arm at ₹40,000 crore. This restructuring gives Bajaj full control over its insurance businesses, allowing for strategic growth and potential IPOs in the future.

Source: Economic Times