NEW DELHI: HDFC Life Insurance Company Ltd has completed the acquisition of Exide Life Insurance Company Limited on 1 January 2022 after it received all relevant regulatory approvals.
From 1 January, Exide Life will operate as a wholly owned subsidiary of HDFC Life.
HDFC Life Insurance has acquired Exide Life through a cash pay-out of Rs 726 crore and issuance of 8,70,22,222 equity shares at price of Rs 685 per share to Exide Industries Limited.
Post-acquisition, Exide Industries now holds 4.1% stake in HDFC Life. The process for merger of Exide Life into HDFC Life will be initiated shortly.
In a statement by HDFC Life, the company said Exide Life’s agency-based distribution model, strong presence in South India, experience across tier 2 and tier 3 locations complement HDFC Life and will help expand its market and bolster its proprietary distribution.
Vibha Padalkar, MD & CEO, HDFC Life said, “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.”
Exide Life Insurance has total AUM of over Rs 18,000 crore (at the end of March 2021) and boasts of over 40,000 insurance advisors across 200 cities in the country. It had a total asset under management of Rs 1.91 lakh crore at the end of second quarter of 2021-22.