JM Financial unit to sell 2.1% stake in home loans arm to Bajaj Allianz Life for Rs 65.5 Cr

JM Financial Credit Solutions Ltd, a wholly-owned subsidiary of JM Financial, on Sunday said it will sell a 2.1% stake in its home loans subsidiary to Bajaj Allianz Life Insurance Company for Rs 65.5 crore.

In a regulatory filing on Sunday, JM Financial said JMFCSL has executed an investment agreement with Bajaj Allianz Life Insurance to sell 1.36 crore equity shares, representing a 2.10% stake in JM Financial Home Loans Ltd at Rs 48 apiece.

The total deal value will be Rs 65.50 crore.

The transaction, scheduled for completion by August 31, will reduce JM Financial Credit Solutions’ shareholding in the home loans subsidiary JMFHLL from 8.98% to 6.88%.

Consequently, JM Financial's effective stake in JMFHLL, through its subsidiaries, will come down from 98.76% to 96.66%, it added.

JMFHLL reported a total income of Rs 368.45 crore in the financial year ended March 31, 2025, contributing 8.27% to JM Financial's consolidated income. Its net worth stood at Rs 797.43 crore, accounting for 8.24% of the consolidated net worth.

Bajaj Allianz Life Insurance, a joint venture between Bajaj Finserv and Germany's Allianz SE, is one of the country's leading private life insurers. The insurer does not belong to JM Financial's promoter or group companies.

JM Financial said the stake sale does not constitute a related-party transaction and falls outside any scheme of arrangement.