HDFC Life share price: HDFC Life seeks shareholders approval to share issue to Exide Industries

New Delhi: Ltd (HDFC Life) will search shareholders’ approval later this month for the issuance of choice shares to within the Rs 6,687-crore deal to amass Exide Life, in line with a regulatory submitting. HDFC Life has convened an extra-ordinary common assembly (EGM) of the corporate’s shareholders on September 29 to hunt their approval for share difficulty, the corporate mentioned in a submitting on Tuesday.

Final Friday, HDFC Life introduced the deal to amass 100 per cent stake, representing 185 crore shares in Exide Life by the use of money and choice difficulty of shares to Exide Industries.

The additional-ordinary common assembly (EGM) of the members of HDFC Life Insurance coverage Ltd shall be held on Wednesday, September 29, 2021, via video-conferencing or different audio visible means to transact the particular enterprise to difficulty fairness shares on preferential foundation to Exide Industries Ltd, the submitting mentioned.

The transaction is anticipated to be a two-step course of with merger of Exide Life into HDFC Life being initiated on completion of its acquisition.

Below the deal, HDFC Life will purchase 100 per cent share capital of Exide Life for a complete consideration of Rs 6,687 crore, of which Rs 725.98 crore shall be paybale to Exide Industries– promoter of Exide Life– in money.

The stability shall be paid by issuing 8,70,22,222 fairness shares of HDFC Life at a worth of Rs 685 per share to Exide Industries via preferential allotment of shares.

Upon completion of the transaction, Exide Industries will maintain a 4.1 per cent stake in HDFC Life.

The deal is topic to clearance from the Insurance coverage Regulatory and Growth Authority of India (Irdai), Competitors Fee of India (CCI), Nationwide Firm Regulation Tribunal (NCLT), inventory exchanges and by the shareholders of HDFC Life and Exide Industries.

HDFC Life mentioned the problem worth of the choice shares to Exide Industries is in accordance with Sebi’s ICDR (Itemizing Obligations and Disclosure Necessities) rules.

It mentioned the problem worth has been decided primarily based on the consideration of valuation report of the goal firm (Exide Life) and the shares of firm (HDFC Life) on September 2, 2021 from impartial registered valuers, equity opinion from service provider banker and pricing certificates from statutory auditor.

The acquisition is anticipated to be accomplished earlier than June 30, 2022.

HDFC Life inventory closed at Rs 734.30 on BSE, down 0.18 per cent from the earlier shut.