Bajaj Finserv Block Deal: Bajaj Holdings, Jamnalal Sons to sell ₹5,828-crore stake

Mumbai, India – June 5, 2025: In a significant market development, Bajaj Holdings & Investment Ltd and Jamnalal Sons Pvt Ltd are set to offload a combined stake worth ₹5,828 crore in Bajaj Finserv Ltd via a block deal. This transaction, which surfaced in deal documents reviewed by market insiders, is among the largest secondary market share sales in recent months and is expected to draw strong interest from institutional investors.

The Deal in Detail

The offer-for-sale comprises approximately 2.68 crore shares, representing 1.6% of Bajaj Finserv's total equity capital, according to the term sheet seen by investment bankers.

The floor price for the block deal has been set at ₹2,175 per share, reflecting a 6.5% discount to Bajaj Finserv’s last closing price of ₹2,326.85 on the National Stock Exchange (NSE). Bajaj Holdings plans to sell 1.92 crore shares, while Jamnalal Sons is offering 76.8 lakh shares.

ICICI Securities, BofA Securities, and Kotak Securities are acting as brokers for the transaction.

Who Are the Sellers?

Bajaj Holdings & Investment Ltd is the promoter investment arm of the Bajaj Group and holds strategic stakes in the group’s financial services businesses. Jamnalal Sons, a closely held company of the Bajaj family, also holds significant investments across the group’s flagship firms.

While the sale has raised concerns about potential promoter dilution, Bajaj Finserv has clarified there will be no change in management or control, and the move is purely for portfolio diversification and liquidity optimization.

Market Context: Why Now?

The block deal comes at a time when Bajaj Finserv shares have delivered over 22% returns in the past 12 months, fueled by a robust performance across its subsidiaries—Bajaj Finance, Bajaj Allianz Life Insurance, and Bajaj Allianz General Insurance.

According to Siddharth Khemka, Head of Retail Research at Motilal Oswal, “Promoters often monetize a portion of their holdings when valuations are favorable. This is a sign of confidence in the long-term fundamentals, especially if the proceeds are intended for reinvestment or debt reduction.”

Additionally, with broader markets hovering near record highs and ample liquidity in the system, investor appetite for quality financial sector stocks has risen.

Bajaj Finserv’s Strong Business Fundamentals

Bajaj Finserv has positioned itself as a leading non-banking financial conglomerate, offering diversified services including consumer lending, life and general insurance, and wealth management. In FY24, the company reported a net profit of ₹7,920 crore, up 28% YoY, backed by strong loan book growth and improved insurance margins.

“Bajaj Finserv’s fundamentals remain intact. This deal does not affect operational strategy or group synergy,” said Sonal Verma, banking analyst at JM Financial.

Investor Outlook: Opportunity or Red Flag?

The planned block deal is expected to open a window for institutional investors to accumulate shares at attractive valuations. Fund houses, insurance companies, and foreign portfolio investors (FPIs) are likely to participate actively, say sources familiar with the transaction.

However, retail investors may initially interpret the deal as a signal of weakening promoter confidence. Analysts, however, urge caution against over-reading such moves.

“It’s essential to differentiate between dilution for strategic financial planning versus a loss of faith. In this case, the Bajaj Group's intent is clear—the sale is for capital realignment,” said Ravi Menon, portfolio manager at ValueQuest Capital.

Historical Precedents & Group Strategy

This is not the first time the Bajaj Group has monetized assets. In past years, similar stake sales have taken place in Bajaj Finance, only to be followed by long-term value creation. Market veterans argue that such monetization helps the group reallocate capital toward new-age ventures, digital infrastructure, or balance sheet strengthening.

Some analysts also speculate that proceeds from the sale may be redirected toward upcoming IPOs or acquisitions by group entities.

Market Reaction

As news of the block deal broke, Bajaj Finserv shares witnessed mild profit-booking in early trade, falling by over 2%. However, buying interest emerged at lower levels, suggesting confidence in the underlying story.

Traders expect some volatility in the short term, but maintain a “buy on dips” view for long-term investors.

The ₹5,828 crore block deal by Bajaj Holdings and Jamnalal Sons in Bajaj Finserv marks a noteworthy capital market event, combining strategic promoter activity with an opportunity for institutional accumulation. While it may create short-term price fluctuations, the underlying fundamentals of Bajaj Finserv remain strong, making it a compelling long-term bet for discerning investors.