New Delhi, Nov 12: Mortgage lender HDFC Ltd on Thursday said insurance regulator Irdai has given the final nod for merger of HDFC ERGO Health Insurance with HDFC ERGO General Insurance.
In late September, the National Company Law Tribunal, Mumbai had okayed the scheme of amalgamation between HDFC ERGO Health Insurance (formerly Apollo Munich Health Insurance Co Ltd) and HDFC ERGO General Insurance Co Ltd (HDFC ERGO).
"In this connection, we wish to inform that the Insurance Regulatory and Development Authority of India (Irdai) vide its letter dated November 11, 2020, has given its final approval for merger of HDFC ERGO Health with and into HDFC ERGO," HDFC said in a regulatory filing.
The general and health insurance companies are the subsidiaries of the country's largest mortgage lender HDFC Ltd.
As per the scheme of amalgamation through a share swap deal, there will be dissolution of HDFC ERGO Health without winding up.
Under this, the share exchange ratio of 100:385 has been okayed by the board of the subsidiary companies which would mean allocation of 385 shares in HDFC ERGO Health for 100 shares in HDFC ERGO.
Post completion of the merger, HDFC will hold 50.58 per cent stake in HDFC ERGO.
"The board of directors of HDFC ERGO and HDFC ERGO Health...approved the share exchange ratio of 100:385 that is for every 385 shares of Rs 10 each held in HDFC ERGO Health as on the record date, 100 shares of Rs 10 each of HDFC ERGO would be allocated," HDFC said in January this year.
Before this, HDFC ERGO acquired a majority shareholding in Apollo Munich Health Insurance Co Ltd.
HDFC scrip traded 0.31 per cent up at Rs 2331.50 apiece on BSE.