
Shares of HDFC and HDFC Life Insurance Company will be in focus on Wednesday morning after the Competition Commission of India (CCI) cleared acquisition of additional shareholding of HDFC Life Insurance Company by HDFC.
HDFC Bank had made certain requests to the Reserve Bank of India (RBI) and that the central bank had on April 20 provided certain forbearances/clarifications to the private lender, wherein it permitted the transfer of shareholding of HDFC in HDFC Life, in terms of the scheme, to HDFC Bank and advised that HDFC or HDFC Bank should increase the shareholding in HDFC Life to more than 50 per cent prior to the effective date of the scheme.
"We wish to inform that the CCI in its meeting held on June 20, 2023, has granted its approval to the proposed combination in terms of Section 31(1) of the Competition Act, 2002, for HDFC Limited to increase its stake in HDFC Life to more than 50 per cent," HDFC Life said in a BSE filing.
CCI in its press release said the proposed combination pertains to the acquisition by HDFC of certain additional shareholding of HDFC Life through one or more on-market purchases over stock exchanges (Proposed combination) such that HDFC (after the proposed combination) and the surviving amalgamated entity i.e. HDFC Bank (after the effective date of the proposed amalgamation of, inter alia, HDFC Limited into HDFC Bank) will hold over 50 per cent of the shareholding of HDFC Life in compliance with Indian banking laws.
A detailed order of the Commission will follow, CCI said.
Shares of HDFC Life settled 2.72 per cent higher at Rs 643.50. Those of HDFC rose 0.29 per cent to Rs 1,608.30. HDFC Bank shares settled at Rs 1,608.30, up 0.29 per cent.
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