HDFC Life Insurance Company on Saturday said it has completed the acquisition of 100 per cent stake in Exide Life Insurance Company from Exide Industries after receiving all the regulatory approvals.
In September last year, HDFC Life had announced that it will acquire 100 per cent of the share capital of Exide Life Insurance for Rs 6,687 crore. The deal was approved by the Competition Commission of India (CCI) in November and by the Insurance Regulatory and Development Authority of India on December 31.
"Pursuant to the agreement, there was a cash pay-out of Rs 726 crore and 8,70,22,222 equity shares at an issue price of Rs 685 per share were allotted to Exide Industries Limited," HDFC Life said in a release.
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, the release said.
"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," HDFC Life said.
HDFC Life MD and CEO said the first-of-its-kind acquisition is a reflection of the company's 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," she added.
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