Read: HDFC Bank hits fresh lifetime high, crosses $100 billion in market cap

The merged insurance coverage entity will have a combined market share of 6.4 per cent of non-life insurance market, with 308 branches throughout the country. This also makes the combined entity the second-largest personal insurer in the mishap and health section, with a market share of 8.2 per cent, the company had actually said.

Enhanced by the advancement, shares of HDFC closed Thursday’s trade at Rs 2,466.20 apiece, up 1.33 percent, on the Bombay Stock Exchange.

By Chitranjan Kumar

Housing Development Finance Corporation Ltd (HDFC) has received approval from Insurance Regulatory and Development Authority of India (Irdai) to acquire a bulk shareholding in Apollo Munich Health Insurance. The home loan lending institution and its subsidiary HDFC ERGO have actually gotten all requisite approvals to acquire 51.2 percent stake in Apollo Munich Health Insurance, HDFC said in filing to exchanges.

Established in 2007, Apollo Munich Health Insurance is a joint endeavor between Chennai-based Apollo Hospitals and German reinsurer Munich Re Group.

“HDFC and HDFC Ergo have actually gotten all requisite approvals for the acquisition consisting of competitors commission of India (CCI), Reserve Bank of India and the last being from Irdai on 1 January,” HDFC said in a regulatory filing.

Post the completion of the proposed acquisition, Apollo Munich will be merged with and into HDFC Ergo, subject to approval from the Mumbai bench of National Company Law Tribunal, it included.

Likewise Read: HDFC to obtain bulk stake in Apollo Munich Health Insurance for

Rs 1,347 crore In June 2019, HDFC had actually announced it would obtain Apollo Hospitals Group’s whole 50.8 per cent stake in Apollo Munich Health Insurance for Rs 1,336 crore and 0.4 percent stake held by a couple of workers for a factor to consider of Rs 10.84 crore. To support the deal, Munich Health will pay Rs 294 crore to Apollo Hospitals Enterprise and Apollo Energy in connection with the termination of their joint endeavor.

A share purchase arrangements (SPAs) in this regards were signed among HDFC ERGO General Insurance, HDFC Ltd, Apollo Munich Health Insurance (AMHI), Apollo Hospitals, Apollo Energy Co Ltd, Munich Health Holdings AG and other shareholders of AMHI. The SPAs underwent approvals from CCI, RBI, and Irdai besides other regulative approvals and subsequent merger of AMHI with HDFC ERGO.