Bajaj Finserv to acquire 100% stake in Vidal Healthcare for ₹325 crore

Bajaj Finserv Health Ltd., a wholly owned subsidiary of Bajaj Finserv Ltd., will acquire 100% equity stake in Vidal Healthcare for an enterprise value of ₹325 crore. 

The acquisition is expected to close in the fourth quarter of this fiscal (Q4FY24).

Upon completion of the acquisition, Vidal Healthcare and its subsidiaries will become wholly owned subsidiaries of Bajaj Finserv Health Ltd.

The acquisition of Vidal Healthcare expands Bajaj Finserv's capabilities in the healthcare space, empowering it to service consumer needs for hospitalization, one of the largest healthcare spends categories, the statement read.

JM Financial Ltd acted as the exclusive financial advisor for Bajaj Finserv Health, while Ernst & Young conducted Financial and Tax Due Diligence and Chitale Legal were the legal advisors.

PwC Corporate Finance acted as the exclusive financial advisor to Vidal Health, while Ernst & Young provided Tax advisory and Shardul Amarchand Mangaldas were the legal advisors.

On the earnings front, Bajaj Finserv on Tuesday reported a 21% year-on-year increase in consolidated net profit at ₹2,158 crore for the third quarter of the current fiscal, driven by strong growth in the arm Bajaj Finance. 

The company's consolidated revenue rose 34% at ₹29,038 crore as against ₹21,755 crore in the same period last year.

Interest income for Q3 rose 33.5% YoY to ₹13,922.38 crore, while premium and other operating income from the insurance business grew by over 35% to ₹12,309 crore.

Shares of Bajaj Finserv Ltd settled 2.80% lower at ₹1,591.10 per share today. The stock has fallen 5% so far this year while it has risen nearly 20% in the last one year.