HDFC Life Insurance Company Ltd on Saturday announced the completion of the acquisition of Exide Life Insurance Company Ltd, subsequent to receiving all relevant regulatory approvals.

HDFC Life, in a statement, said Exide Life will operate as its wholly owned subsidiary.

The process for merger of Exide Life into HDFC Life will be initiated shortly.

HDFC Life completed the acquisition of 100 per cent stake in Exide Life from Exide Industries through issuance of about 8.70 crore shares at an issue price of ₹685 per share and a cash payout of ₹726 crore, aggregating to ₹6,687 crore. Exide Industries now holds 4.1 per cent stake in HDFC Life.

Exide Life’s agency based distribution model, strong presence in South India and experience across tier 2 and tier 3 locations complements HDFC Life and will help expand its market and bolster its proprietary distribution, the statement said.

Vibha Padalkar, MD & CEO, HDFC Life, said, “We recognise that the life insurance market in India is multi-faceted, where one solution might not fit all. Different distribution channels and a varied product mix help cater to different customer cohorts across the diverse geography, and this acquisition is an important milestone towards our strategic objective of bringing more people into the fold of financial protection.”