Insurance regulator Irdai has given final approval to HDFC Life Insurance Company Ltd (HDFC Life) to incorporate Exide Life into the company. In January this year, HDFC Life acquired a 100% stake in Exide Life Insurance Company from its parent company Exide Industries, for Rs 6,687 crore to increase its presence in the southern Indian market.

HDFC Life said in a regulatory filing on Thursday that the Insurance Regulatory and Development Authority of India (Irdai) has given final approval to the merger and transfer of the life insurance business in its letter dated October 13, 2022.

Exide Industries acquires a 4.12% stake in HDFC Life as the life insurance business moves to HDFC Life. Exide Life operates through an agency-based distribution model with a strong presence in South India, covering tier 2 and 3 cities. This is in addition to HDFC Life’s market expansion and enhanced proprietary distribution.

Last month, the insurer received approval for the Exide Life merger from a Mumbai judge of the National Company Law Tribunal (NCLT). Shares of HDFC Life closed at Rs 520.65 per share on the BSE, down 1.05% from the previous close.