HDFC Life Insurance on Thursday said the Insurance Regulatory and Development Authority of India (IRDAI) has approved the merger of Exide Life Insurance with the private insurer.
"We further wish to inform you that the Insurance Regulatory and Development Authority of India vide its letter dated October 13, 2022, has provided its final approval to the Scheme in accordance with Insurance Regulatory and Development Authority (Scheme of Amalgamation and Transfer of Life Insurance Business) Regulations, 2013," the company said in a regulatory filing.
In September, the Mumbai Bench of the National Company Law Tribunal (NCLT) approved the scheme of amalgamation.
Last year, HDFC Life announced the acquisition of 100 percent stake in Exide Life from its parent Exide Industries after issuing over 8.7 crore shares at an issue price of Rs 685 and a cash payout of Rs 726 crore, aggregating to Rs 6,687 crore.
Exide Industries now holds 4.1 percent stake in HDFC Life.
Exide Life's agency-based distribution model, a strong presence in South India and experience across tier II and III locations complement HDFC Life and will help expand its market and bolster its proprietary distribution, the life insurance company said in a statement.
