HDFC Life Insurance has completed the acquisition of Exide Life by allotting over 8.7 crore shares of the company to Exide Industries, the insurer said on Saturday.
The Capital Raising Committee of the board has vide its resolution dated January 1, 2022, allotted 8,70,22,222 equity shares of the company to Exide on a preferential basis, and the company has completed the acquisition of 100 per cent shareholding of Exide Life from Exide, HDFC Life Insurance said in a regulatory filing.
Accordingly, Exide Life became a wholly-owned subsidiary of the company with immediate effect -- from January 1, 2022, it said.
The deal was announced in September 2021.
The shares were issued at an issue price of Rs 685 per scrip and a cash payout of Rs 726 crore, aggregating to Rs 6,687 crore.
"The acquisition will accelerate the scale-up of the proprietary channels, strengthen presence in South India and across tier 2 and tier 3 locations. The merger of Exide Life into HDFC Life will be initiated shortly," HDFC Life said.
With this, Exide Industries now holds a 4.1 per cent stake in HDFC Life.
Exide Life's agency based distribution model, a 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, it said.
Vibha Padalkar, MD and CEO, HDFC Life, said, 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".
She said this acquisition is an important milestone towards the company's strategic objective of bringing more people into the fold of financial protection.
She also thanked the outgoing MD and CEO of Exide Life, Kshitij Jain for his stellar leadership in helping build a strong institution.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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