Exide gets new "life"

Exide Industries is the top gainer on the BSE, rising over 14% to hit an intraday high at Rs.202.95 and this is after briefly touching the 20% UC at Rs.196.05, which now stands at Rs.213.85.

The stock is up on its announcement that HDFC Life Insurance Company (HLIC) is acquiring 100% share capital of Exide Life Insurance Company for a total consideration of Rs.6,687 crore.

Of the total consideration, Rs.723 crore will be payable in cash and the balance by way of issue of about 8.70 crore equity shares of face value Rs.10 of HLIC issued at a price of Rs.685 per share to Exide Industries Ltd (the holding company of Exide Life Insurance).

The issuance of shares to Exide Industries will be on a preferential allotment basis for non-consideration. An EGM has been called for 29th Sept, seeking shareholders approval for the same.

Upon completion of the transaction, Exide Life Insurance is proposed to be merged into HLIC.