Shares of HDFC Life Insurance Company were trading mute, while Exide Life Insurance Company Limited stocks gained 1 per cent after the former completely acquired the latter.  HDFC Life Insurance Company Limited on Saturday announced that it has completed the acquisition of Exide Life Insurance Company Limited after receiving all relevant regulatory approvals.

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Effective from January 1, Exide Life will operate as a wholly owned subsidiary of HDFC Life, while Exide Industries now holds 4.1 per cent stake in HDFC Life, as per HDFC life.  

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At around 10.30 am, shares of Exide Industries were trading with one per cent gain at Rs 170 per share on the BSE, while the HDFC Life Insurance traded mute at Rs 650.00, up Rs 1.20in the early trade on Monday.  

As per the statement from Exide Life the company will now operate as a wholly owned subsidiary of HDFC Life.  

"This is to inform you that pursuant to and in accordance with the disclosures made above, the Company has divested its entire equity shareholding in Exide Life Insurance Company Limited, a material wholly owned subsidiary of the Company, by way of sale to HDFC Life Insurance Company Limited today i.e. 1 January 2022," said Exide Life in a BSE filing.  

Earlier on December 31, HDFC LIfe said that the Insurance Regulatory and Development Authority of India has provided its approval for the acquisition of 100% of the equity share capital of Exide Life Insurance Company Limited by the Company and granted in-principle approval for the proposed merger of Exide Life Insurance Company Limited into the Company.

“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. 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,” said Vibha Padalkar, MD & CEO, HDFC Life post announcement.