Bajaj group company acquires a 19.95 per cent stake in BAGIC and BALIC for Rs 18,553 crore; Company Expands Insurance Portfolio with Twin Acquisitions!

With a PE ratio of 17.3x, the company trades at a discount compared to the industry PE of 19.3x. The company has ROCE of 13.1 per cent and ROE of 14.3 per cent.

Bajaj Holdings & Investment Ltd. has announced a significant strategic move to acquire a 19.95 per cent stake in both Bajaj Allianz General Insurance Company Limited (BAGIC) and Bajaj Allianz Life Insurance Company Limited (BALIC) from Allianz SE. This acquisition, approved by the Board on 17 March 2025, involves a cash consideration of Rs 10,573 crore for BAGIC and Rs 7,980 crore for BALIC, totaling Rs 18,553 crore. The acquisition is part of Bajaj Holdings' objective to strengthen its position as a group investment holding company. The transaction is subject to regulatory approvals, including those from the Competition Commission of India and the Insurance Regulatory Development Authority of India, with completion expected by 16 July 2026. BAGIC and BALIC are key players in the non-life and life insurance sectors, respectively, with significant market presence in India. BAGIC reported a gross written premium of Rs 20,630 crore for FY 2023-24, while BALIC's gross written premium stood at Rs 23,043.04 crore for the same period. This strategic acquisition aligns with Bajaj Holdings' investment strategy and is anticipated to enhance its portfolio in the insurance sector.

Bajaj Holdings & Investment Ltd. operates as an investment company and is registered as a Non-Banking Financial Institution – Investment and Credit Company with the Reserve Bank of India. The company holds a substantial stake of over 36 per cent in Bajaj Auto Ltd. and Bajaj Finserv Ltd., reflecting its strong presence in the financial and automotive sectors. As of 17 March 2025, the company's stock price was Rs 11,589.7, with a market capitalization of Rs 1,28,985.84 crore. Over the past three years, Bajaj Holdings has delivered impressive returns of 131.23 per cent, showcasing its robust growth trajectory. The company's strategic investments and diversified portfolio continue to make it a significant player in the Indian financial landscape. The company has been maintaining a healthy dividend payout of 26.6 per cent.

In the Quarterly Results of Dec-24, the revenue stood at Rs 126.33 crore, reflecting a YoY growth of 16.92 per cent but a QoQ decline of 54.73 per cent from Rs 279.07 crore in Sep-24. The net profit for Dec-24 was Rs 1,748.36 crore, showing a YoY increase of 6.32 per cent and a QoQ rise of 21.72 per cent from Rs 1,436.36 crore in Sep-24. The net profit margin for Dec-24 was 1383.96 per cent, compared to 514.70 per cent in Sep-24 and 1521.92 per cent in Dec-23.

For the full-year FY24 results, the revenue stood at Rs 1,701.98 crore, reflecting a growth of 226.26 per cent from Rs 521.66 crore in FY23. The net profit for FY24 was Rs 7,511.30 crore, registering a growth of 411.18 per cent from Rs 1,398.13 crore in FY23. The net profit margin for FY24 stood at 82.15 per cent compared to 52.43 per cent in FY23.

As of December 2024, the shareholding pattern shows that promoters hold 51.46 per cent, FIIs hold 10.65 per cent, DIIs hold 7.12 per cent, and the public holds 30.75 per cent. There is a notable increase in DII holdings from 6.80 per cent in the previous quarter to 7.12 per cent, while FII holdings have declined from 10.89 per cent to 10.65 per cent.

With a PE ratio of 17.3x, the company trades at a discount compared to the industry PE of 19.3x. The company has ROCE of 13.1 per cent and ROE of 14.3 per cent.  

Investors must keep this Large-Cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.