HDFC gets CCI nod for acquisition of additional stake in HDFC Life; stocks trade higher

21 Jun 2023 , 02:34 PM

Following the approval of the Competition Commission of India (CCI), mortgage lender HDFC is now allowed to acquire a majority stake in HDFC Life. The news boosted the stocks of HDFC Life, HDFC, and HDFC Bank on June 21.

At around 2.20 PM, HDFC Life was trading 1.77% higher at Rs 655.10, against the previous close of Rs 643.70 on NSE. The counter hit an intraday high of Rs 659.95.

Subsequently, HDFC Bank is trading 1.63% higher at Rs 1,633.75 apiece. It is among the top NSE gainers today. HDFC is trading at Rs 2,697, up by 1.45%.

After the merger with HDFC, HDFC Bank, which will be the surviving amalgamated entity, will eventually own more than half of HDFC Life. The combined entity’s shareholding in HDFC ERGO has also been approved.

As of March 2023, a 48.65% stake in HDFC Life was held by HDFC.

The Reserve Bank of India (RBI) authorized HDFC Bank or HDFC to increase its stake in both insurance companies to more than 50% prior to the merger’s effective date in April. Following the RBI’s approval, CCI approval is another step towards the merger.

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