HDFC Life Share Price: HDFC Life Insurance to acquire Exide Life for Rs 6,687 cr; HDFC Life stock tanks 3%, Exide Industries jumps 9%

by Jeremy
HDFC Life Insurance Company’s stock fell more than 3% during the opening hour of trade to hit a low of Rs 728.55 per share.

HDFC Life Insurance Share Price Today: HDFC Life Insurance Company on Friday announced the acquisition of Exide Life Insurance Company for Rs 6,687 crore. “HDFC Life will acquire 100% stake in Exide Life Insurance from Exide Industries via issuance of (8.7 crores) shares at an issue price of Rs 685 per share and a cash payout of Rs 726 crore aggregating to Rs 6,687 crore,” HDFC Life Insurance said in a statement on Friday morning. Investors were displeased: HDFC Life Insurance Company’s stock fell more than 3% during the opening hour of trade to hit a low of Rs 728.55 per share. HDFC Life is the biggest listed private insurance company in terms of market capitalization.

HDFC Life said that the acquisition would accelerate the growth of its agency business. “Exide Life complements HDFC Life’s geographical presence and has a strong foothold in South India, especially in Tier 2 and 3 towns, thus providing access to a wider market. Further, a good quality, predominantly traditional and protection focussed business, will augment the existing embedded value of HDFC Life by approximately 10%,” they added. HDFC said that the embedded value of Exide Life, as of June 30, 2021, is Rs 2,711 crore, as reviewed by its advisory firm. JM Financial Limited and Ambit Private Limited provided fair opinions to the Boards of HDFC Life and Exide Industries, respectively.

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