This large-cap NBFC was down by 1.5 percent after the company’s unlisted subsidiary Bajaj Allianz General Insurance Company Limited received a Show Cause Cum Demand Notice from the Directorate General of GST Intelligence for 1010 Cr.
At 3:00 p.m the shares of Bajaj Finserv were trading at Rs 1,530 down by 1.5 percent from its previous day close price and the market capitalization of the company is 2,44,250 Cr.
As per the company’s filing on BSE, Bajaj Allianz General Insurance Company Limited an unlisted material subsidiary of Bajaj Finserv has received a Show Cause Cum Demand Notice from the Directorate General of GST Intelligence on September 29,2023, alleging a tax demand of 1,010.05 Cr.
The alleged demand and the impugned Show Cause Cum Demand Notice pertains to non-payment of GST on the Co-insurance premium accepted as follower in case of coinsurance transactions and non-payment of GST on reinsurance commission accepted on the reinsurance premium ceded to various Indian and Foreign reinsurance companies during the period July 2017 to March 2022.
The company’s revenue has increased by 19.98 percent from 68,406.08 in FY22 to 82,071.24 in FY23, accompanied by increasing profits of 8,313.53 to 12,209.54 Crores.
The company has reported a return on equity (ROE) of 28.46 percent and return on capital employed (ROCE) of 12.73 percent, though the company is making good returns on its equity, it is only able to make decent returns on its capital employed.
According to the latest shareholding data available for the June 2023 quarter, the company’s Promoters hold 60.79 percent stake, the Domestic Institutional Investors hold 7.29 percent and the Foreign Institutional Investors (FII) hold 7.17 percent.
Bajaj Finserv is a non-banking financial services company(NBFC), it offers a wide range of financial products and services such as loans, cards, payments, investments, insurance etc.
Written by: Bharath K.S
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