HDFC Ltd on Friday said it has acquired an additional 0.5097 percent stake in HDFC Ergo to make it a subsidiary.
HDFC Limited acquired 36,42,290 equity shares of HDFC Ergo, representing 0.5097 percent of its total issued and paid-up share capital from ERGO International AG, the other promoter, the company said in a regulatory filing.
"Post the said acquisition, HDFC Limited holds 50.50 percent of the total paid-up share capital of HDFC Ergo. Accordingly, HDFC Ergo has become a subsidiary of HDFC Limited," it said.
This is part of the reverse merger exercise of HDFC Ltd with its banking subsidiary HDFC Bank from July 1.
The RBI had permitted the transfer of shareholding of HDFC Limited in HDFC Ergo to HDFC Bank and advised that HDFC Limited or HDFC Bank should increase the shareholding in the general insurance company to more than 50 percent before the effective date of the merger Scheme, it said.
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