Bengaluru: HDFC Life Insurance said on Friday it would buy an Exide Industries Life Insurance Unit for Rs 6,687 Crore ($ 915.50 million), because it tried to increase its customer base in the market which was largely untapped.
This agreement will help HDFC Life, the largest private sector insurance company in the country, strengthens its foothold in South India.
Indian life insurance penetration reached 2.82% in 2019, according to the latest annual report from the country’s insurance regulator.
The agreement came at a time the country prepared for the initial public offering of the Indian insurance life insurance company.
Pegus industrial stocks jumped 10% after an agreement and set for their best week in 15 years, while HDFC Life fell by 4.2%.
As part of the agreement, HDFC Life will issue 87 million shares to get the industry at 685 rupees per share and pay Rs 7,260 Crore Cash, HDFC Life said in the submission of regulations.
Exide Life has a 1.2 million customer base and more assets than Rs 18,781 Crore, on June 30.
The company, which has a total premium income of more than RS 3,325 Crore for the financial year 2020-21, will be combined with HDFC.
Live as soon as the agreement is closed.
Exide Industries, India’s largest Indian lead acid storage battery manufacturer, has reached the total investment of Rs 1,680 Crore in the soul insurance business.
“That (agreement) will increase insurance penetration and advance our goals to provide financial protection to a broader customer base,” said Chairman of the Deepak HDFC Life Life Parekh.
Live HDFC to buy an Exide insurance business for $ 915 million
