Housing Development Finance Corporation has augmented its stake to over 50% in HDFC Life Insurance after getting approval from the Competition Commission of India (CCI) and the Insurance Regulatory and Development Authority of India (RDAI).

HDFC acquired 3,62,22,213 equity shares of HDFC Life, instead of 1.69% of the overall issued and paid-up capital, from the secondary market between June 26 and June 28.

HDFC selected 1.65 crore equity shares in HDFC Life amid open market transactions at an average price of Rs 674.87 per share and 1.48 crore shares at an average price of Rs 667.1 per share.

HDFC now holds 50.33% of the entire paid-up share capital of HDFC Life; thus, HDFC Life is a subsidiary of HDFC. As of March 2023, HDFC had held a 48.65% stake in HDFC Life.
After HDFC Bank’s request, RBI permitted the transfer of Corporation shareholding in HDFC Life and HDFC ERGO General Insurance to HDFC Bank in April. And advised that HDFC or HDFC Bank should upsurge the shareholding in HDFC Life and HDFC ERGO to 50% before the effective date of the scheme, the RBI said.

Later, fair trade watchdog CCI and insurance regulator IRDAI on June 23 approved HDFC to raise its stake in HDFC Life beyond 50%.
On April 4 last year, the board members of HDFC permitted the scheme of amalgamation. As per the scheme, subsidiaries HDFC Investments and HDFC Holdings will be amalgamated with the promoter HDFC, and then HDFC will be combined with HDFC Bank.