JM Financial Credit Solutions Ltd (JMFCSL), a wholly owned subsidiary of JM Financial Ltd, has decided to sell a 2.1% equity stake in JM Financial Home Loans Ltd (JMFHLL) to Bajaj Allianz Life Insurance Company Ltd for an overall consideration of 65.5 crore.
In an official exchange housing, JMFCSL entered into an investment agreement with Bajaj Allianz Life on August 9, 2025. In the understanding, JMFCSL shall sell 13,646,000 equity shares of 13.44 crore rupees in JMFHLL at the rate of 48 rupees per share. The deal should be completed within the second quarter of the current financial year, i.e., by August 31, 2025.
After the deal is done, JMFCSL will have a lower ownership (6.88%) in JMFHLL than its current ownership (8.98%). As a result, JM Financial Ltd.'s total stake in the housing finance business, which is through its numerous subsidiaries, will reduce to 96.66%, compared to its current investment of 98.76%.
JMFHLL's overall income is reported to be 368.45 crores for the financial year ended March 31, 2025. In the same period, the business contributed 8.27% to JM Financial's consolidated revenue. On March 31, it recorded a net worth of 797.43 crores, or 8.24% of the group as a whole.
The stake sale helps JM Financial have extra money available and a better position since a reputed institutional investor comes in as a partner in its housing finance branch. Bajaj Finserv Ltd is a carmaker that has a joint venture with Allianz SE of Germany to form Bajaj Allianz Life Insurance.
In January 2025, Allianz SE entered into separate agreements to sell its share in its Indian insurance joint ventures by selling its stakes in Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance. Indian regulator, the Competition Commission of India, approved the deal worth 24180.0 Crore in May 2025.
This transaction also allowed Bajaj Finserv and its partner entities to increase their share to 100% in these two insurance organizations, as Bajaj Allianz Life considers other possibilities in finance by building on new investment opportunities.