HDFC picks up additional shares in HDFC Life Insurance

30 Jun 2023 , 12:18 PM

On June 28, the promoter Housing Development Finance Corporation purchased additional shares in HDFC Life Insurance Company worth Rs 1,118.84 crore in open market transactions.

Based on the bulk deal information on stock exchanges, the Corporation has recently acquired 1.65 crore equity shares of HDFC Life.

This acquisition represents approximately 0.77% of the total paid-up equity of the life insurance company. The shares were bought at an average price of Rs 674.87 per share. The total value of the stake acquired amounts to Rs 1,118.84 crore.

In the previous session, HDFC picked 1.48 crore shares of HDFC Life for a total consideration of Rs 992.64 crore at an average price of Rs 667.1 per share.

HDFC’s stake in its life insurance subsidiary was 48.65% as of March 2023. In connection with HDFC’s merger with HDFC Bank, the Reserve Bank of India advised the Corporation or HDFC Bank in April to increase its shareholding in HDFC Life and HDFC ERGO to more than 50% prior to the effective date of the scheme of amalgamation.

The Competition Commission of India has also granted the mortgage lender permission to increase its stake in HDFC Life to more than 50% in the current month. After the merger, HDFC Bank will own more than half of HDFC Life.

At around 12.09 PM, HDFC was trading 1.23% higher at Rs 1,696.70 per piece, against the previous close of Rs 1,676.15 on NSE. The counter touched an intraday high and low of Rs 1,704.90 and Rs 1,683.25, respectively.

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