HDFC Life on Thursday announced the closure of the acquisition Exide Life deal, which will pave the way for increasing its presence in the south India market. The private sector insurer acquired a 100 per cent stake in Exide Life from its parent Exide Industries after issuing over 8.7 crore shares at an issue price of Rs 685 and a cash payout of Rs 726 crore, aggregating to Rs 6,687 crore.
Exide Industries now holds a 4.1 per cent stake in HDFC Life. HDFC Life said the deal is closed subsequent to receiving all relevant regulatory approvals and it will soon initiate the merger of Exide Life with itself.
Exide Life's agency-based distribution model, a strong presence in south India and experience across tier-II and -III locations complement HDFC Life and will help expand its market and bolster its proprietary distribution, the life insurance company said in a statement.
"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," HDFC Life Managing Director and CEO Vibha Padalkar said. She also thanked the outgoing MD and CEO of Exide Life, Kshitij Jain, for his leadership in helping build Exide Life as a strong institution.