HomeBusinessHDFC Life Declines 3% Post Acquisition Of Exide Life Insurance, a wholly-owned...

HDFC Life Declines 3% Post Acquisition Of Exide Life Insurance, a wholly-owned subsidiary of Exide Industries

HDFC Life Declines 3% Post Acquisition Of Exide Life Insurance

As of 1:30 pm, HDFC Life shares have been buying and selling at Rs 735, decrease by 3.14 per cent, on the BSE

HDFC Life Insurance Company shares nosedived greater than 3 per cent on the BSE after the corporate introduced the acquisition of Exide Life Insurance, a wholly-owned subsidiary of Exide Industries, for Rs 6,687 crore. HDFC Life will purchase 100 per cent stake in Exide Life Insurance for Rs 6,687 crore, out of which Rs 725.97 crore can be paid in money and the remaining quantity by way of a share challenge. As of 1:30 pm, HDFC Life shares have been buying and selling at Rs 735, decrease by 3.14 per cent, on the BSE.

Mr Deepak S. Parekh, Chairman, HDFC Life mentioned, “This is a landmark transaction, 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.”

“HDFC Life will acquire 100 per cent stake in Exide Life Insurance from Exide Industries via 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 corporate mentioned in a assertion to the inventory exchanges.

The proposed deal will assist speed up the expansion of HDFC Life’s company enterprise and faucet into Exide Life’s robust presence in South Indian cities, HDFC Life added.

Exide Life Insurance had a whole premium earnings of Rs 3,325 crore for monetary 12 months 2020-21 and as on June 30, 2021 it had belongings underneath administration amounting to Rs 18,78 crore.

The BSE Sensex and NSE Nifty have been buying and selling increased by 0.3 per cent a the time.

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