Insurance sector regulator Irdai has granted final approval to HDFC Life Insurance Company Ltd (HDFC Life) to merge Exide Life into the company.
In January this year, HDFC Life acquired 100 per cent stake in Exide Life Insurance Company from its parent firm Exide Industries for Rs 6,687 crore in order to increase its presence in the south India market.
The Insurance Regulatory and Development Authority of India (Irdai), vide its letter dated October 13, 2022, has given its final approval to the scheme of amalgamation and transfer of life insurance business, HDFC Life said in a regulatory filing on Thursday.
With the transfer of its life insurance business to HDFC Life, Exide Industries acquired 4.12 per cent stake in HDFC Life.
Exide Life worked through an agency-based distribution model with a strong presence in south India covering tier II and III cities. This came as a complement for HDFC Life to expand its market and bolster proprietary distribution.
Last month, the insurer had received approval from the Mumbai bench of the National Company Law Tribunal (NCLT) for merger of Exide Life into itself.
Stock of HDFC Life closed at Rs 520.65 apiece on BSE, down by 1.05 per cent from previous close