September 22, 2021

The World Live Breaking News Coverage & Updates IN ENGLISH

The World Live Breaking News Coverage & Updates IN ENGLISH

HDFC Life to buy Exide’s insurance business for $915 million

2 min read
HDFC Life to buy Exide’s insurance business for 5 million
Share This :
HDFC Life to buy Exide’s insurance business for 5 million
HDFC Life to buy Exide’s insurance business for 5 million

BENGALURU: HDFC Life Insurance said on Friday it will buy the life insurance unit of battery maker Exide Industries for Rs 6,687 crore ($915.50 million), as it seeks to increase its customer base in a largely untapped market.
The deal will help HDFC Life, the country’s largest private-sector insurer, strengthen its foothold in south India. India’s life insurance penetration stood at 2.82% in 2019, according to the latest annual report from the country’s insurance regulator.
The deal comes at a time the country is gearing up for the initial public offering of state-owned insurer Life Insurance Corp of India.
Exide Industries’ shares surged 10% after the deal and were set for their best week in 15 years, while HDFC Life fell as much as 4.2%.
As part of the deal, HDFC Life will issue 87 million shares to Exide Industries at 685 rupees per share and pay Rs 7,260 crore in cash, HDFC Life said in a regulatory filing.
Exide Life had a customer base of 1.2 million and assets of more than Rs 18,781 crore, as of June 30.
The company, which had a total premium income of over Rs 3,325 crore for the financial year 2020-21, will be merged with HDFC Life once the deal closes.
Exide Industries, India’s largest manufacturer of lead-acid storage batteries, has till date made a total investment of Rs 1,680 crore in its life insurance business.
“It (the deal) would enhance insurance penetration and further our purpose of providing financial protection to a wider customer base,” HDFC Life chairman Deepak Parekh said.

Share This :
Copyright © All rights reserved. | Newsphere by AF themes.