Exide Industries shares surge 15% on announcement of insurance coverage biz sale to HDFC Life

Shares of Exide Industries surged 15 per cent on Friday after HDFC Life Insurance introduced that it’s going to purchase Exide Life Insurance for Rs 6,687 crore.
The scrip surged 14.98 per cent to Rs 204.90 apiece on the National Stock Exchange (NSE), whereas on the BSE it jumped 13.86 per cent to Rs 202.95 per share.
Earlier within the day, HDFC Life knowledgeable the inventory exchanges that it’s going to purchase 100 per cent of the share capital of Exide Life Insurance for a complete consideration of Rs 6,687 crore. of which Rs 725,97,77,930 can be payable in money and the steadiness by the use of challenge 8,70,22,222 fairness shares of face worth of Rs 10 of the Company issued at a value of Rs 685 per share to Exide Industries.
The completion of the acquisition is topic to customary circumstances corresponding to receipt of all regulatory and different approvals.
“The Board of Directors of HDFC Life Insurance Company Limited (“HDFC Life”), Exide Industries Limited (“Exide Industries”) and Exide Life Insurance Company Limited (“Exide Life”), at their respective conferences held at the moment, authorised the transaction involving the sale of Exide Life Insurance to HDFC Life,” the HDFC Life assertion stated.
It additional knowledgeable that the method for merger of Exide Life into HDFC Life can be initiated on completion of the acquisition.
The closure of the proposed transaction will inter alia be topic to approval by related regulators together with the Insurance Regulatory and Development Authority of India (IRDAI), Competition Commission of India (CCI), National Company Law Tribunal (NCLT), inventory exchanges and approval by the shareholders of HDFC Life and Exide Industries, the assertion stated.