Shares were issued at an issue price of Rs 685 per scrip and a cash payout of Rs 726 crore
New Delhi:
HDFC Life Insurance has completed its acquisition of Exide Life by allocating more than 8.7 crore of shares of the company to Exide Industries, the insurer said on Saturday. The Board of Directors’ Capital Raising Committee has announced its decision dated January 1, 2022, allocating 8,70,22,222 shares of the company to Exide on a preferential basis, and the company has completed the acquisition of 100 percent of Exide Life’s shareholding. . of Exide, HDFC Life Insurance said in a regulatory filing.
Accordingly, Exide Life became a wholly owned subsidiary of the company effective 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 added up to Rs 6,687 crore.
“The acquisition will accelerate the scale-up of its own channels, strengthen its presence in South India and in tier 2 and tier 3 locations. The merger of Exide Life into HDFC Life will start shortly,” said HDFC Life.
With this, Exide Industries now has a 4.1 percent interest in HDFC Life. Exide Life’s agency-based distribution model, a strong presence in South India and experience in the second and third locations complement HDFC Life and will help expand its market and strengthen its own distribution, it said.
Vibha Padalkar, MD and CEO, HDFC Life, said: “We are very pleased to welcome the Exide Life family into ours. This first of its kind acquisition is a reflection of our intention to build a stronger India through a financial safety net for more people”.
She said this acquisition is an important milestone toward the company’s strategic goal of bringing more people into the fold of financial protection. She also thanked outgoing MD and CEO of Exide Life, Kshitij Jain, for his outstanding leadership in helping build a strong institution.
