HDFC Life Insurance shares rise on IRDAI nod for Exide Life merger

Shares of HDFC Life Insurance were in focus today after the insurance sector regulator IRDAI gave its final approval to merge Exide Life into the company. HDFC Life Insurance stock gained 2.5 per cent to Rs 533.45 against the previous close of Rs 520.65 on BSE. The stock has fallen 25 per cent in 2022 and lost 19.75 per cent in a year.Total 0.12 lakh shares of the firm changed hands amounting to a turnover of Rs 62.58 crore on BSE. Market cap of the firm rose to Rs 1.13 lakh crore on BSE. 

The stock hit a 52-week high of Rs 725 on September 11, 2021  and a 52-week low of Rs 497.30 on March 8, 2022.
The appointed date of the acquisition is April 1, 2022, and it shall be effective from the end of the day on October 14, 2022, the company said in its exchange filing.

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In January this year, HDFC Life acquired 100 per cent stake in Exide Life Insurance Company from its parent firm Exide Industries from for Rs 6,687 crore through the issuance of 8,70,22,222 shares at an issue price of Rs 685 per share and a cash payout of Rs 726 crore, aggregating to Rs 6,687 crore. 

The company said after the acquisition, Exide Life will operate as a wholly owned subsidiary of HDFC Life. Exide Industries now holds 4.1 per cent stake in HDFC Life.

HDFC Life reported a 21 percent rise in net profit at Rs 365 crore for the first quarter of the current fiscal year against Rs 302 crore profit in April-June 2021-22.

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The total premium rose 21 percent to Rs 9,396 crore during the quarter as compared with Rs 7,656 crore in the year-ago period, HDFC Life said in a statement. During the latest quarter, the first-year premium collection rose by 27 percent to Rs 4,776 crore from Rs 3,767 crore in the same period a year ago.