HDFC Life buys Exide Life insurance for ₹ 6,687cr

HDFC Life Insurance Co. Ltd agreed to buy Exide Life Insurance Co. Ltd, a unit of battery maker Exide Industries Ltd, for ₹6,687 crore, allowing the country’s most important private insurer to bolster its presence in south India.

Of the total deal value, HDFC Life will pay ₹725.98 crore in cash and the rest by giving 87 million shares at ₹685 each to Exide Industries, HDFC Life said in a regulatory filing.

The purchase will help HDFC Life with deepen its presence in south India, particularly smaller towns, complementing its market footprint, the firm said, adding that it will likewise give access to a wider market.

The acquisition is expected to be completed by next June and is dependent upon regulatory and different approvals. The merger process of Exide Life into HDFC Life will be initiated upon completion of the acquisition, the insurer said.

Bengaluru-based Exide Life has a client base of around 1.19 million and assets of over ₹18,781 crore as of June 30. Exide Life’s all out premium income rose to ₹3,325 crore in the year to March 31 from ₹3,220 crore in the previous year.