Shares of the nation’s largest battery maker, Exide Industries, rose as a lot as 14 per cent to hit an intraday excessive of Rs 202.95 after the corporate knowledgeable exchanges that its board of administrators has accepted divestment of its complete stake in life insurance coverage enterprise to HDFC Life Insurance. HDFC Life will purchase 100 per cent stake in Exide Life Insurance for a complete consideration of Rs 6,687 crore. As a part of the deal, HDFC Life pays Rs 725.97 crore in money and the stability by means of problem 8.70 crore shares at Rs 685 per share to Exide Industries.
Exide Life Insurance had a complete premium revenue of Rs 3,325 crore for monetary yr 2020-21 and as on June 30, 2021 it had property below administration price Rs 18,78 crore.
“We believe that transaction can result in value creation for customers, employees, shareholders and distribution partners. This transaction will provide an opportunity for HLIC and the target to realise synergies arising out of complementary business models,” HDFC Life mentioned in a inventory change submitting.
“The proposed transaction will give customers access to a wider bouquet of products and service touch points. Employees and agents will benefit from a larger, stronger organisation that realises the synergies arising out of complementary business models built on similar ethos. The proposed transaction will accelerate the growth of the Agency business of HDFC Life. Exide Life complements HDFC Life’s geographical presence and has a strong foothold in South India, especially in Tier 2 and 3 towns, thus providing access to a wider market.” HDFC Life added.
“This transaction is testimony to the reputation that Exide Life Insurance has built of being a well-managed company. We look forward to working closely with the HDFC Life team on the proposed transaction. Being part of one of India’s most respected life insurance companies will certainly benefit our customers, employees, agents and partners,” mentioned Kshitij Jain, MD & CEO, Exide Life Insurance Company.
As of 10:57 am, Exide Industries shares have been buying and selling 6 per cent greater at Rs 189.75 whereas HDFC Life shares fell 3.3 per cent to Rs 734.