IBEF: November 13, 2020
Mortgage lender HDFC Ltd on Thursday announced insurance regulator Irdai has granted the final nod for merger of HDFC ERGO Health Insurance with HDFC ERGO General Insurance. The general and health insurance companies are the subsidiaries of the largest mortgage lender in the world, HDFC Ltd.
The combination scheme between HDFC ERGO Health Insurance (formerly Apollo Munich Health Insurance Co Ltd) and HDFC ERGO General Insurance Co Ltd (HDFC ERGO) was authorised by the National Company Law Tribunal in Mumbai at the end of September.
HDFC will retain a 50.58% stake in HDFC ERGO after the completion of the merger.
“We would like to inform in this reference that the Insurance Regulatory and Development Authority (Irdai) has given its final approval for the merger of HDFC ERGO Health and HDFC ERGO," HDFC said in a regulatory filing.
Accordingly, the share exchange ratio of 100:385 was agreed by the Board of Subsidiary Companies, which would mean the allocation of 385 HDFC ERGO Health shares to 100 HDFC ERGO shares.
“HDFC ERGO and HDFC ERGO Health's board of directors approved the 100:385 share exchange ratio, which is 100 shares of Rs. 10 (US$ 0.13) for every 385 shares held in HDFC ERGO Health as at the record date, 100 shares of Rs. 10 (US$ 0.13) each of HDFC ERGO will be allocated," HDFC said in January 2020.
Prior to this, a majority stake in Apollo Munich Health Insurance Co Ltd was purchased by HDFC ERGO.
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