| Bajaj Finserv Limited (BFS) is the holding company for the various financial services businesses under the Bajaj Group. It serves millions of customers in the financial services space by providing solutions for asset acquisition through financing, asset protection through general insurance, family protection and income protection in the form of life and health insurance and retirement and savings solutions. BFS holds 52.49% stake in Bajaj Finance Limited (BFL) and 74% stake each in Bajaj Allianz General Insurance Company Limited (BAGIC) and Bajaj Allianz Life Insurance Company Limited (BALIC). Apart from financial services, BFS is also active in wind energy generation and has investments in renewable energy in the form of 138 windmills, situated in Maharashtra, with an aggregate installed capacity of 65.2 MW.
Bajaj Finserv was formed in April 30, 2007 as a result of its demerger from Bajaj Auto Limited as a separate entity to focus purely on the financial services business of the group. Pursuant to demerger of Bajaj Auto Ltd. in 2008, the undertaking comprising of windmills and investment in financial services were transferred to the Company. In addition to that, cash and cash equivalent of Rs 800 crore (then market value) was also transferred to the Company. The demerger enabled investors to hold separate focused stocks and facilitated transparent benchmarking of the companies to their peers in their respective industries.
On 20 April 2009, Bajaj Finserv and Allianz Global Investors AG (AllianzGI), the asset management subsidiary of Allianz SE, signed an agreement to set up as asset management Joint Venture Company in India. AllianzGI and Bajaj Finserv will hold a 51% and 49% state, respectively, in the equally managed proposed venture.
On 10 November 2009, Bajaj Finserv announced that the Reserve Bank of India has issued to the company a Certificate of Registration dated 30 October 2009 under section 45-IA of the RBI Act, 1934 to carry on the business of a Non-Banking Financial Institution (NBFC) (non-deposit taking).
On 5 May 2010, Bajaj Finserv announced that Bajaj Auto Finance (BAFL) has launched its Construction Equipment (CE) financing and Retail Loan against Securities (LAS) business in the month of April 2010.
04 March 2011, Bajaj Finserv said in a clarification to the stock exchanges that the company does not have any plan, at present or in the foreseeable future, to sell its equity to Berkshire Hathaway group of companies. Berkshire Hathaway will enter Indian insurance business as a corporate agent for Bajaj Allianz General Insurance Company Ltd (BAGIC), a 74% subsidiary of Bajaj Finserv Ltd. The tie up will help BAGIC expand its customer base. BAGIC has about 40 corporate agents.
On 17 October 2012, Bajaj Finserv successfully allotted 1.44 crore equity shares to existing eligible shareholders on a rights basis in the ratio of 1 equity share for every 10 equity shares held on the record date. The rights issue was priced at Rs 650 per share. The company raised Rs 939 crore from the issue. The rights shares were listed on BSE and NSE on 22 October 2012.
On 27 June 2013, Bajaj Finserv announced that it has submitted its application to Reserve Bank of India on 26 June 2013 for a licence to commence banking business in terms of section 22 of the Banking Companies Act, 1949. It is proposed to do this by converting its subsidiary Bajaj Finance Ltd into a bank in terms of RBI Guidelines for Licensing of New Banks in the Private Sector dated 22 February 2013.
On 1 November 2014, Bajaj Finserv transferred by way of sale of 100% shares of Bajaj Financial Solutions Ltd. (together with its wholly-owned subsidiary, Bajaj Financial Securities Ltd.), for a consideration of Rs 17 crore, on an arm's length basis, to its subsidiary company, Bajaj Finance Ltd, to facilitate Bajaj Finance Ltd promote the business of housing finance. The transaction was approved by the Company's Board of Directors at its meeting held on 14 October 2014.
On 3 November 2015, Bajaj Finserv announced that the Reserve Bank of India has accorded its approval for conversion of the company into a Core Investment Company, not requiring registration with RBI and has accordingly cancelled the Certificate of Registration as NBFC earlier issued to the company.
On 23 November 2016, Bajaj Finserv exercised its right to convert 92.5 lakh warrants of Bajaj Finance Limited into equity shares upon payment of balance 75% amount aggregating to Rs 306.08 crore. Consequently, the company's shareholding in Bajaj Finance increased from 57.28% to 58%. The paid-up equity share capital as on 31 March 2017 was Rs 79.57 crore.
During the Rights Issue of equity shares made by the Company in 2012, certain shares had been kept in abeyance as required by law. With resolution of a few cases during the year 2017, the Company has allotted 327 equity shares of the face value of Rs 5 each at the original Rights Issue price of Rs 650 per share to the eligible shareholders.
During the year, BFL divided its equity shares of face value of Rs 10 each to Rs 2 each and also issued one fully paid bonus equity share of the face value of Rs 2 against one equity share of the face value of Rs 2.
As on 31 March 2017, Bajaj Finserv held 74% of the equity capital in its joint ventures, BAGIC and BALIC, the balance being held by Allianz.
The paid-up equity share capital as on 31 March 2018 was Rs.79.57 crore consisting of 159,135,097 fully paid-up equity shares of face value of Rs.5 each. During the Rights Issue of equity shares made by the Company in 2012, certain shares had been kept in abeyance as required by law. With resolution of a few cases during the year under review, the Company has allotted 3,317 equity shares of the face value of Rs.5 each at the original Rights Issue price of Rs.650 per share to the eligible shareholders.
During the year 2017-18, Bajaj Financial Holdings Ltd., a wholly-owned subsidiary, has firmed up new business plans for undertaking activities on digital and online platform to augment the business of Company's subsidiaries and consequently, changed the name to Bajaj Finserv Direct Ltd. with effect from 27 February 2018
During FY2020, Bajaj Finserve Direct Ltd (BFSD), subsidiary which was incorporated in FY2019, launched its digital platform 'FINSERVE MARKETS'. During the fiscal 2020, BFS incorporated a wholly owned subsidiary in the name of Bajaj Finserv Health Ltd.
In FY 2020, Company started a broking business through its 100% subsidiary, Bajaj Financial Securities Ltd. (BFinsec).
As on 31 March 2021, Company held 74% of the equity capital in both BAGIC and BALIC, with the balance being held by Allianz.
During FY2022, the Company along with Bajaj Finance Ltd. (BFL), a subsidiary company, made a joint investment in the form of Equity Shares and/or Convertible Loan or Security into Equity Shares to Bajaj Finserv Direct Ltd. (BFS-D). Consequent to infusion in equity capital by BFL, BFS-D ceased to be a wholly-owned subsidiary of the Company. As at 31 March 2022, BFS and BFL respectively hold 80.10% and 19.90% of Equity Share Capital in BFS-D.
During FY2022, Bajaj Finserv Ventures Ltd. (BFS-Ventures), Bajaj Finserv Asset Management Ltd. (BFS-AMC) and Bajaj Finserv Mutual Fund Trustee Ltd. were incorporated as wholly owned subsidiaries of the Company. |