INR 6,687 crore. The Competition Commission of India (CCI) cleared the agreement in November, and the Insurance Regulatory and Development Authority of India (IRDAI) approved it on December 31.
According to the press release from HDFC Life, “Pursuant to the agreement, there was a cash pay-out of Rs 726 crore and 8,70,22,222 equity shares at an issue price of Rs 685 per share were allotted to Exide Industries Limited”. According to the statement, Exide Life will become a wholly owned branch of HDFC Life starting from January 1, and Exide Industries currently owns a 4.1 percent share in HDFC Life.
HDFC Life expressed confidence in Exide Life’s performance and accomplishments so far. The firm said, “Exide Life’s agency based distribution model, strong presence in South India and experience across tier 2 and tier 3 locations complements HDFC Life and will help expand its market and bolster its proprietary distribution”.
According to HDFC Life’s MD and CEO, Vibha Padalkar, the fresh transaction reflects the firm’s commitment to build a stronger India by offering a financial safety net and customized services to more individuals. Vibha Padalkar expressed delight over the acquisition and highlighted the varied customer demands of the nation. She added, “We recognise that the life insurance market in India is multi-faceted, where one solution might not fit all. Different distribution channels and a varied product mix help cater to different customer cohorts across the diverse Indian geography, and this acquisition is an important milestone towards our strategic objective of bringing more people into the fold of financial protection”.
