HDFC Life Acquired Exide’s Insurance Business For Rs 6,687 Crore.
The transaction was made while the country was preparing for the initial public offering of the National Insurance Company of India Life Insurance Company.
HDFC Life Insurance said on Friday that it will acquire the life insurance division of battery manufacturer Exide Industries for Rs 6,687 crore in order to seek to expand its customer base in a largely untapped market.
The agreement will help HDFC Life, the country’s largest private insurance company, strengthen its operations in South India. According to the latest annual report of the country’s insurance regulator, the penetration rate of life insurance in India in 2019 was 2.82%.
The arrangement comes all at once the nation is preparing for the first sale of stock of state-possessed back up plan Life Insurance Corp of India.
Exide Industries’ offers flooded 10% after the arrangement and were set for their greatest week in 15 years, while HDFC Life fell as much as 4.2 percent.
As a feature of the arrangement, HDFC Life will give 8.7 crore offers to Exide Industries at ₹ 685 for every offer and pay ₹ 726 crore in real money, HDFC Life said in an administrative documenting.
HDFC Life Insurance said on Friday that it will acquire the life insurance division of battery manufacturer Exide Industries for Rs 6,687 crore in order to seek to expand its customer base in a largely untapped market.
The agreement will help HDFC Life, the country’s largest private insurance company, strengthen its operations in South India. According to the latest annual report of the country’s insurance regulator, the penetration rate of life insurance in India in 2019 was 2.82%.
Exide Industries, the country’s largest lead-acid battery manufacturer, has so far invested 1,680 crore in its life insurance business.
“(The agreement) will increase insurance penetration and further achieve our goal of providing financial protection to a wider customer base,” HDFC Life President Deepak Parekh said.
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