Will HDFC Life’s buyout of Exide Life add value for its shareholders?
Exide acquisition will augment HDFC Life’s agency channel and widen its geographical presence
September 06, 2021 / 03:30 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
HDFC Life Insurance (CMP: Rs 742; Mcap: Rs 150,100 crore) announced the acquisition of Exide Life in one of the biggest deals in the life insurance sector. The deal indicates a step towards consolidation in the private life insurance sector, which consists of 23 players but the bulk of the market share is in the hands of the top five players.
Contours of the deal
HDFC Life will pay a total consideration of Rs 6,687 crore for a 100 per cent...