HDFC Life Insurance Company share price fell 4 percent in early trade on September 3 after the company said it would acquire Exide Life Insurance, a wholly-owned subsidiary of Exide Industries, for Rs 6,687 crore.
"HDFC Life will acquire 100 percent stake in Exide Life Insurance from Exide Industries via issuance of 8,70,22,222 shares at an issue price of Rs 685 per share and a cash payout of Rs 726 crore aggregating to Rs 6,687 crore," the company said in a statement.
The proposed deal will help accelerate the growth of HDFC Life's agency business, and tap into Exide Life's strong presence in South Indian cities.
Out of the total consideration, Rs 725,97,77,930 will be payable in cash and the balance by way of issue 8,70,22,222 equity shares of face value of Rs 10 of the company issued at a price of Rs 685 per share to Exide Industries.
The transaction is subject to the relevant regulatory approvals.
Also, the board approved issuance of 8,70,22,222 equity shares of face value of Rs 10 each on a preferential allotment basis at a price of Rs 685 per equity share.
The approval of shareholders for the proposed issue is sought to be obtained at an extraordinary general meeting on September 29, 2021.
At 09:24 hrs, HDFC Life Insurance Company Limited was quoting at Rs 739.60, down Rs 19.20, or 2.53 percent on the BSE.
Exide Industries was quoting at Rs 196.05, up Rs 17.80, or 9.99 percent and there were pending buy orders of 602,875 shares, with no sellers available on the BSE.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
