In 1994-95, Bajaj Auto Finance came out with an initial public offer and was listed on the BSE and NSE. Initially, the company was promoted by erstwhile Bajaj Auto Ltd and Bajaj Auto Holdings Ltd.

Bajaj Finserv was formed on April 30, 2007, as a result of its demerger from Bajaj Auto Limited(BAL) as a separate entity to focus purely on the financial services business of the group.

In May 2008, the demerger process was complete. In this case, BAL was demerged into (a) BAL to focus on the auto business, (b) Bajaj Finserv Ltd (BFSL) to focus on wind energy generation, insurance, consumer finance, etc, and (c) Bajaj Holdings & Investment Ltd (BHIL) to focus on investments and new business opportunities.

Here is an excerpt explaining this demerger process in detail –

Bajaj Auto Ltd (BAL) had announced that the Board of Directors of the Company at its meeting held on May 17, 2007, has approved the Scheme for Demerger (“Scheme”) of the businesses of the Company.

The demerger of (1) the two and three wheeler manufacturing undertaking (“Manufacturing Undertaking”) and (2) its Strategic Businesses comprising the generation of wind-energy using wind-farms, the insurance business conducted through its joint ventures Bajaj Allianz Life Insurance Company Ltd and Bajaj Allianz General Insurance Company Ltd, financial products distribution business conducted through Bajaj Allianz Financial Distributors Ltd and interests in retail / consumer finance business conducted by Bajaj Auto Finance Ltd. (collectively, the “Strategic Business Undertaking”) to two newly incorporated subsidiaries, Bajaj Holdings and Investment Ltd (“BHIL”) and Bajaj Finserv Ltd (“BFL”).

The Manufacturing Undertaking shall vest in BHIL and Strategic Business Undertaking shall vest in BFL.