Competition Commission of India and Insurance Regulatory and Development Authority of India granted HDFC Limited permission to increase stake in HDFC Life to over 50 per cent, the company announced through an exchange filing. This makes HDFC Life a subsidiary of the company.
HDFC Limited between June 26 and June 28 acquired 3,62,22,213 shares representing 1.69 per cent of HDFC Life from the secondary market. According to the bulk deal data available on exchanges, HDFC bought 1.65 crore shares on June 28 at an average cost of Rs 674.87 per share and 1.48 crore shares at a price of Rs 667.1 per share on June 26.
Post the acquisition HDFC holds 50.33 per cent of the total paid-up share capital of HDFC Life making it a subsidiary.
After HDFC Bank's request, the Reserve Bank of India in April permitted the transfer of shareholding of the corporation in HDFC Life and HDFC ERGO General Insurance Company to HDFC Bank. RBI also advised the company to increase the shareholding in HDFC Life and HDFC Ergo to over 50 per cent.
Earlier this month the fair trade watchdog CCI and insurance regulator IRDAI granted approval to HDFC to raise its stake in HDFC Life over 50 per cent.
HDFC Life and HDFC share
The shares of HDFC Life Insurance Company on Wednesday closed at Rs 659.70, up by 4.67 per cent and the shares of HDFC bank closed at Rs 1,678.10, up by 2.30 per cent.
