With the merger of HDFC Bank and HDFC nearing the finishing line, the parent HDFC (Housing Development Finance Corporation) on Tuesday increased its stake in its life insurance arm—HDFC Life Insurance by 0.7 percent.
HDFC on Tuesday bought 1.5 crore shares of HDFC Life Insurance at an average price of Rs 667.10 per piece, valuing the deal at Rs 993 crore, bulk deals data on NSE showed. Sellers were not immediately known.
The merger between the two will take effective from July 1 and the merged entity will have to hold at least 50 percent, so as the bank can show it as a subsidiary and consolidate its earnings. As of March 2023, HDFC holding in HDFC Life Insurance stood at 48.65 percent.
After getting approval from the Competition Commission of India to raise HDFC’s stake in HDFC Life Insurance, the Insurance Regulatory and Development Authority of India also granted its nod to transfer HDFC’s holding in insurance unit to HDFC Bank.
Shares of HDFC Life Insurance rose as much as seven percent in intra-day trade to hit their 52-week high of Rs 674 on the NSE.
