HDFC Life completes purchase of Exide life insurance

HDFC Life Insurance Company announced on Saturday that it has completed the purchase of a 100 percent stake in Exide Life Insurance Company from Exide Industries after receiving all regulatory approvals.

In September last year, HDFC Life announced it would buy 100 percent of Exide Life Insurance’s share capital for Rs 6,687 million. The agreement was approved by the Competition Commission of India (CCI) in November and the Insurance Regulatory and Development Agency on 31 December.

“In accordance with the agreement, there was a cash payment of Rs 726 million and 8,70,22,222 shares at an issue price of Rs 685 per share was allotted to Exide Industries Limited,” HDFC Life said in a statement.

As of January 1, Exide Life will operate as a wholly owned subsidiary of HDFC Life, while Exide Industries now holds a 4.1 percent stake in HDFC Life, the statement said.

Read also: HDFC Life buys Exide life insurance for Rs 6,687 cr

“Exide Life’s agency-based distribution model, strong presence in South India and experience at Level 2 and Level 3 locations complement HDFC Life and will help expand its market and strengthen proprietary distribution,” said HDFC Life.

HDFC Life MD and the CEO said the first acquisition of its kind is a reflection of the company’s intention to build a stronger India by providing a financial safety net to more people.

“We are aware that the life insurance market in India is multiple, where one solution may not suit everyone. Different distribution channels and diverse product mix help provide services to different customer groups across India’s diverse geography, and this acquisition is an important milestone towards our strategic goal to we are bringing more people into financial protection, “she added.

Read also: Air India reports a loss of Rs 5,422.6 million in April-September

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