HDFC Life Insurance has completed the acquisition of Exide Life by allotting over 8.7 crore shares of the company to Exide Industries, the insurer said on Saturday.
HDFC Life Insurance has completed the acquisition of Exide Life by allotting over 8.7 crore shares of the company to Exide Industries, the insurer said on Saturday. The Capital Raising Committee of the board has vide 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 per cent shareholding of Exide Life from Exide, HDFC Life Insurance said in a regulatory filing.
Accordingly, Exide Life became a wholly-owned subsidiary of the company with immediate effect -- from January 1, 2022, it said. The deal was announced in September 2021. 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 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," HDFC Life said.
With this, Exide Industries now holds a 4.1 per cent stake in HDFC Life. Exide Life's agency-based distribution model, a strong presence in South India, and experience across tier-two and tier-three locations complements HDFC Life and will help expand its market and bolster its proprietary distribution, it said.