Exide Industries’ share price jumped around 14 per cent to hit a day’s high of Rs 202.95 per share on the BSE intraday trade on Friday. The surge in the parent company is mainly due to its 100 per cent stake sale of insurance business to HDFC Life Insurance, which was announced through exchanges.

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According to Exide Industries filing to exchanges, the company divested its entire stake in Exide Life Insurance Company, by way of sale to HDFC Life Insurance Company for a total consideration of Rs 6,687 crore.

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Exide Life Insurance Company is a material wholly-owned subsidiary of Exide Industries.

The internals of the deal were also announced by the HDCFC Life Insurance in a filing through exchanges today. The stock tumbled 4 per cent at Rs 728.55 on the BSE intraday on profit booking. However, it had touched a life high of Rs 775.65 on Thursday.

The board of Directors of HDFC Life, Exide Industries and Exide Life, at their respective meetings held today, approved the transaction involving the sale of Exide Life Insurance to HDFC Life.

Both the companies through respective filing said, HDFC Life will acquire 100 per cent stake in Exide Life Insurance from Exide Industries via issuance of 87 million shares at an issue price of Rs 685 per share and a cash payout of Rs 726 crore aggregating to Rs 6,687 crore.

Zee Business Managing Editor Anil Singhvi in his analysis of HDFC Life Insurance and Exide Life Insurance deal said, it is a win-win for both the insurers, however, it turns out to be more fruitful for the Exide as it sold its insurance arm business above valuations.

Exide Industries’ shares at around 12:40 pm was trading over 7 per cent higher to Rs 190.75 per share on the BSE as compared to 0.18 per cent rise in the S&P BSE Sensex. Similarly, HDFC Life shares at around same time was trading weak over 3 per cent to Rs 735.5 per share today.