HDFC Life Insurance gets IRDAI approval to merge Exide Life; stock gains ~1%

14 Oct 2022 , 11:22 AM

The Insurance Regulatory and Development Authority of India (IRDAI) has given final clearance to HDFC Life Insurance Company Limited (HDFC Life) to merge Exide Life with the company.

HDFC Life purchased a 100% stake in Exide Life Insurance Company from its parent company Exide Industries in January this year for Rs6,687 crore in order to expand its footprint in the south Indian market.

The Insurance Regulatory and Development Authority of India (IRDAI) has given its final clearance to the scheme of merger and transfer of life insurance business, according to a regulatory filing by HDFC Life on Thursday.

Exide Industries purchased a 4.12% stake in HDFC Life by transferring its life insurance business to HDFC Life.

Exide Life used an agency-based distribution strategy and had a substantial presence in southern India, spanning tier II and III cities. This was a complement to HDFC Life's efforts to grow its market and strengthen proprietary distribution.

The insurer gained authorisation from the Mumbai bench of the National Company Law Tribunal (NCLT) last month to integrate Exide Life into itself.

At around 11.11 AM, HDFC Life was trading 1.15% higher at Rs526.65, against previous close of Rs520.65 on NSE. The counter hit an intraday high and low of Rs534.40 and Rs522.90 respectively.

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