Bajaj Finserv gains on stake sale buzz in insurance business

NEW DELHI: Shares of Bajaj Finserv Ltd rose as much as 2.34 per cent in trade on Thursday, after reports suggested that the company will sell part of its stake in its life and non-life insurance joint ventures.

According to a TNN report, Bajaj Finserv will sell part of its stake in its life and non-life insurance joint ventures to its foreign partner Allianz once the insurance Act is amended. The company stated that amendments to the Act would be a positive for the shareholders.

Sanjeev Bajaj, MD, Bajaj Finserv, said, that both the life insurance business and the non-life insurance business were generating funds to sustain themselves and no further capital infusion was required.

Bajaj Finserv is the only promoter who has gone public with the terms of its agreement with its foreign partner Allianz. The agreement allows the multinational to increase stake in life insurance up to 74% and in non-life up to 50% should the law allow it. In his Budget, finance minister Arun Jaitley had said that the government will allow 49% foreign investment in insurance, the report added.

On Wednesday, the company reported a jump of 14% in its Q1 net profit to Rs 319 crore.

At 10:15 a.m., the stock of Bajaj Finserv was trading at Rs 956 up 0.88 per cent on the BSE. It hit a high of Rs 969.95 and a low of Rs 950 in trade today.