New Delhi, HDFC Life Insurance Company Limited (HDFC Life) on Saturday announced the completion of the acquisition of Exide Life Insurance Company Limited (Exide Life), subsequent to receiving all relevant regulatory approvals.

Effective Saturday, Exide Life will operate as a wholly-owned subsidiary of HDFC Life. Pursuant to the agreement, there was a cash pay-out of Rs 726 crore and 8,70,22,222 equity shares at an issue price of Rs 685 per share were allotted to Exide Industries Limited (Exide Industries).

Exide Industries now holds 4.1 per cent stake in HDFC Life. The process for merger of Exide Life into HDFC Life will be initiated shortly.

Exide Life's agency based distribution model, strong presence in south India and experience across Tier 2 and Tier 3 locations complement HDFC Life and will help expand its market and bolster its proprietary distribution.

Commenting on the development, Vibha Padalkar, MD and CEO, HDFC Life, said, "We are extremely happy to welcome the Exide Life family into ours. HDFC Life is committed to protecting lives and is doing all it can to lessen the life insurance gap that exists in our country.

"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 Indian geography, and this acquisition is an important milestone towards our strategic objective of bringing more people into the fold of financial protection."