Report Wire

News at Another Perspective

HDFC Life to accumulate Exide Life Insurance for Rs 6,687 crore

Private life insurer HDFC Life Insurance Friday mentioned it is going to purchase Exide Life Insurance from Exide Industries in a deal value Rs 6,687 crore.
“The board of directors of HDFC Life Insurance Company (HDFC Life), Exide Industries and Exide Life Insurance Company… approved the transaction involving the sale of Exide Life Insurance to HDFC Life,” HDFC Life mentioned in a launch.
HDFC Life will purchase 100 per cent stake in Exide Life Insurance from Exide Industries through issuance of 8,70,22,222 shares at a difficulty worth of Rs 685 per share and a money payout of Rs 726 crore aggregating to Rs 6,687 crore.
The course of for merger of Exide Life into HDFC Life shall be initiated on completion of the acquisition, the insurer mentioned within the launch.

The closure of the proposed transaction shall be topic to approval by related regulators together with the Insurance Regulatory and Development Authority of India (IRDAI), Competition Commission of India (CCI), National Company Law Tribunal (NCLT), inventory exchanges and approval by the shareholders of HDFC Life and Exide Industries.
“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 Chairman Deepak Parekh mentioned within the launch.
HDFC Life Managing Director and CEO Vibha Padalkar mentioned the amalgamation can lead to worth creation for purchasers, workers, shareholders and distribution companions.
“It gives us an opportunity to realise synergies arising out of complementary business models, and further bolster our proprietary distribution network,” she mentioned.
The proposed transaction will give clients entry to a wider bouquet of merchandise and repair contact factors.
Exide Life has a robust foothold in South India, particularly in tier 2 and three cities.

The launch mentioned a great high quality, predominantly conventional and protection-focused enterprise, will increase the prevailing embedded worth of HDFC Life by roughly 10 per cent.
The embedded worth of Exide Life, as on June 30, 2021, is Rs 2,711 crore and has been reviewed by Willis Towers Watson Actuarial Advisory LLP, it mentioned.

  • Situs toto
  • slot gacor hari ini