Mumbai (PTI): HDFC Life Insurance on Friday said it will acquire 100% stake in Exide Life Insurance from Exide Industries in a deal amounting to Rs 6,687 crore.
The Board of directors of HDFC Life Insurance, Exide Industries and Exide Life Insurance, at their respective meetings held on Friday, approved the transaction involving the sale of Exide Life Insurance to HDFC Life, HDFC Life said.
HDFC Life managing director and CEO Vibha Padalkar said, “While we continue to grow faster than the overall life insurance market, we have always been actively taking opportunities to supplement that with inorganic growth.” She said in line with this thought process, the company is pleased to announce the acquisition of 100% stake in Exide Life Insurance from Exide Industries. “The acquisition is being done via issuance of 87 million shares at an issue price of Rs 685 per share and the cash payout of Rs 726 crore, aggregating to Rs 6,687 crore.” HDFC Life chairman Deepak Parekh said this is a landmark transaction and the first of its kind in the Indian life insurance space.
“It would enhance insurance penetration and further our purpose of providing financial protection to a wider customer base,” Parekh said. The closure of the proposed transaction is subjected to various regulatory approvals, including from the Insurance Regulatory and Development Authority of India, Competition Commission of India, NCLT, stock exchanges and by the shareholders of HDFC Life and Exide Industries.