HDFC Ltd to acquire 51.2 per cent stake in Apollo Munich

Gayathri Udyawar
/ Categories: Trending, DSIJ News
HDFC Ltd to acquire 51.2 per cent stake in Apollo Munich

India's leading lender HDFC Limited has signed an agreement to acquire 51.2 per cent stake in Apollo Munich Health Insurance Limited from Apollo Energy Company Limited and Apollo Hospitals Enterprise Limited.

 

Apollo Munich Health Insurance is a joint venture between Apollo Hospitals Group and Munich Health, which is a Munich Re's health business segment.

 

The deal includes 18,39,03,862 equity shares of Apollo Munich at Rs. 10 each. HDFC will acquire 50.8 per cent stake for Rs. 1,336 crore from Apollo Hospitals Group and another 0.4 per cent stake from Apollo Munich employees for Rs. 10.84 crore. Also, Munich Health, Germany will pay Rs. 294 crore to Apollo Hospitals Enterprise and Apollo Energy to support the transaction.

 

The deal is subject regulatory approval from various agencies including the National Housing Bank, Insurance Regulatory and Development Authority of India and the Competition Commission of India.

 

Post the acquisition, Apollo Munich Health Insurance Limited will be merged with HDFC ERGO General Insurance Company, which is a joint venture between the HDFC and ERGO International AG, a insurance entity of Munich Re Group, Germany. The new entity will have a strong health insurance franchise with a combined gross direct premium of Rs. 10,807 crore and will be the second largest private insurer in India in the accident and health segment with a market share of 8.2 per cent.

 

Reacting to this development, the stock of Apollo Hospital was quoting Rs. 1,368.35 per share, up by Rs. 16.15 or 1.19 per cent, while HDFC Limited was trading at Rs. 2,195.10 per share, up by Rs. 16.80 or 0.77 per cent on Thursday.

 

Rate this article:
5.0

Leave a comment

Add comment

DSIJ MINDSHARE

Mkt Commentary28-Mar, 2024

Multibaggers28-Mar, 2024

Interviews28-Mar, 2024

Multibaggers28-Mar, 2024

Multibaggers28-Mar, 2024

Knowledge

General26-Mar, 2024

MF25-Mar, 2024

General18-Mar, 2024

DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR