HDFC Life completes the acquisition of Exide Life
HDFC Life completed the acquisition of 100% stake in Exide Life from Exide Industries through issuance of 8,70,22,222 shares at an issue price of Rs. 685 per share and a cash payout of Rs. 726 crore, aggregating to Rs. 6,687 crore
The acquisition will accelerate the scale-up of the proprietary channels, strengthen presence in South India and across tier 2 and tier 3 locations
Merger of Exide Life into HDFC Life will be initiated shortly
Chennai, HDFC Life Insurance Company Limited (“HDFC Life”) announced the completion of the acquisition of Exide Life Insurance Company Limited (“Exide Life”) today, subsequent to receiving all relevant regulatory approvals. Effective today, Exide Life will operate as a wholly owned subsidiary of 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 (“Exide Industries”). Exide Industries now holds 4.1% stake in HDFC Life. The process for merger of Exide Life into HDFC Life will be initiated shortly.
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.
Commenting on the development, Vibha Padalkar, MD & CEO, HDFC Life said, “We are extremely happy to welcome the Exide Life family into ours. This first-of-its-kind acquisition is a reflection of our intent to build a stronger India by providing a financial safety-net to more people. HDFC Life is committed to protecting lives and doing all it can to lessen the life insurance gap that exists in our country. 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.”
She added, ”We would like to thank the out-going MD & CEO of Exide Life, Kshitij Jain for his stellar leadership in helping build a strong institution.”