Bajaj Finserv inches closer to new high

Bajaj Finserv went tantalizingly close its 52-week high of Rs.2160 when it hit the intra day high point at Rs.2159.20. It has since then slipped down a bit and is now at Rs.2130 levels, up over 2.5%.

There is unconfirmed news that the financial arm of Bajaj Holdings, Bajaj Finserv might buy out the 26% stake of Aliiance in its two insurance units - Bajaj Allianz Life Insurance Co. Ltd and Bajaj Allianz General Insurance. In both companies, Bajaj Finserv has a 76% stake.

This deal, if it does happen, is estimated at Rs.10,000 crore. Post the Govt liberalizing the FDI route for insurance sector, Allianz has in fact been talking to Bajaj to hike its stake to 49% but due to disagreement over pricing, this could never happen. Following this, Allianz now prefers to exit.  On buying out Allianz, this could be marked as the largest deal in the insurance sector in India