HDFC Life completes acquisition of Exide Life; merger to begin shortly
Pursuant to the agreement, there was a cash pay-out of Rs 726 cr and 8,70,22,222 (over 87 million) equity shares at an issue price of Rs 685 per share were allotted to Exide Industries Limited, which now holds 4.1 per cent stake in HDFC Life
HDFC Life Insurance Company Limited has completed the acquisition of Exide Life Insurance Company Limited after receiving all relevant regulatory approvals, the company announced on Saturday.
Exide Life will now operate as a wholly owned subsidiary of HDFC Life, the media release said.
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Pursuant to the agreement, there was a cash pay-out of Rs 726 cr and 8,70,22,222 (over 87 million) equity shares at an issue price of Rs 685 per share were allotted to Exide Industries Limited, which now holds 4.1 per cent stake in HDFC Life.
The process for merger of Exide Life into HDFC Life will be initiated shortly, the release said.
Shares of HDFC Life ended at Rs 651 on the NSE on Friday, up over 1.6 per cent from the last closing price of Thursday.
Exide Life’s agency based distribution model, strong presence in South India and experience across tier 2 and tier 3 locations complements HDFC Life and will help expand its market and bolster its proprietary distribution, the release claimed.
“We are extremely happy to welcome the Exide Life family into ours. This first-of-its-kind acquisition is a reflection of our intent to build a stronger India by providing a financial safety-net to more people,” Vibha Padalkar, Managing Director & Chief Executive Officer (CEO) at HDFC Life said commenting on the development.
“We recognise that the life insurance market in India is multi-faceted, where one solution might not fit all. Different distribution channels and a varied product mix help cater to different customer cohorts across the diverse Indian geography, and this acquisition is an important milestone towards our strategic objective of bringing more people into the fold of financial protection,” she said.
HDFC Life formerly HDFC Standard Life Insurance Company Limited was established as a joint venture between HDFC Ltd and global investment company abrdn plc.
HDFC Life offers a range of individual and group insurance solutions such as protection, pension, savings, investment, annuity and health. The Company had 38 individual and 13 group products in its portfolio, along with 7 optional rider benefits, catering to a diverse range of customer needs as on September 30, 2021 the release said.
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