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India-based leading insurance company, HDFC Life Insurance Company has announced that “It has completed the acquisitions of 100% shares in Exide Life Insurance from Exide Industries.’
In a filing with the stock exchange, HDFC Life Insurance said, “The Capital Raising Committee of the board has vided 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 percent shareholding of Exide Life from Exide, HDFC Life Insurance.”
“Accordingly, Exide Life became a wholly-owned subsidiary of the company with immediate effect from January 1, 2022. 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 statement said.
Speaking on the acquisition, HDFC Life said, “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.”
“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.
Commenting on the acquisition, Vibha Padalkar, MD & 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.”
“This acquisition is an important milestone towards the company’s strategic objective of bringing more people into the fold of financial protection,” She added.
With this acquisition deal, Exide Industries now holds a 4.1 percent stake in HDFC Life.