Vibha Padalkar, MD & CEO, HDFC Life
HDFC Life completed the acquisition of 100% stake in Exide Life from Exide Industries through 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.Merger of Exide Life into HDFC Life will be initiated shortly. The acquisition will accelerate the scale-up of the proprietary channels, strengthen presence in South India and across tier 2 and tier 3 locations
Mumbai:
HDFC Life Insurance Company announced the completion of the acquisition of Exide Life Insurance Company (“Exide Life”) today, subsequent to receiving all relevant regulatory approvals.
Effective today, Exide Life will operate as a wholly owned subsidiary of HDFC Life.The process for merger of Exide Life into HDFC Life will be initiated shortly.
Vibha Padalkar, MD & CEO, HDFC Life said, “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. 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.”
Pursuant to the agreement, there was a cash pay-out of Rs726 crore and 8,70,22,222 equity shares at an issue price of Rs. 685 per share were allotted to Exide Industries Limited.
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, said HDFC Life.