Bajaj Finserv up 8%, may buy Allianz's stake in insurance units

Bajaj Finserv shares touched record high of Rs 2,245.30, up 8 percent intraday Monday after a media report indicated that the company is likely to buy out German partner's stake in its insurance units.

"Bajaj Finserv is likely to buy out its German partner Allianz SE's stakes in two insurance units — Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance — in a deal estimated at as much as Rs 10,000 crore," a media report said quoting three people familiar with the development.

Bajaj Finserv, the financial services arm of Bajaj Holdings and Investments, owns 74 percent and Allianz SE holds 26 percent in both the ventures.

"Allianz has been in discussions with Bajaj to increase its stake in the two insurance firms to 49 percent after the government raised the foreign investment limit in Indian insurers to 49 percent from 26 percent in March 2015. The discussions failed to yield any result since the two parties could not agree on the price," the report says.