Bajaj Finserv, the financial services company of the Bajaj Group, is in the final stages of negotiations with Allianz Global Investors, the asset management unit of Munich-based Allianz, to set up an asset management company (AMC) in India. The announcement is expected in three to four weeks, said a source close to the development.
Bajaj Holdings and Investment, Bajaj Finserv’s parent company, already has operational joint ventures with Allianz for life and general insurance businesses. While the law bars foreign investors such as Allianz from holding over 26 per cent stake in insurance ventures, there is no such restriction on AMCs. As a result, Allianz Global Investors will hold at least 50 per cent stake in the proposed venture, the source added.
In response to an e-mail from Business Standard, Bajaj Finserv Managing Director Sanjiv Bajaj said, “This is an issue under discussion and currently confidential.”
The company had announced its intention to get into asset management business and also set up a distribution company for financial products. While Bajaj announced its intention in May this year, Allianz too had stated its interest in foraying into the AMC business last year.
“Allianz considers India to be one of the three core growth markets. This is not restricted to insurance, where we started operations in India in 2001. We also see great potential for profitable growth in asset management in India. This is why Allianz Global Investors is very interested in the Indian market and is exploring opportunities to enter the asset management market,” Allianz Asia spokesperson Christoph John said over the phone from Singapore.
