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Irdai offers closing nod for merger of HDFC ERGO Health with HDFC ERGO General Insurance

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Mortgage lender HDFC Ltd on Thursday stated insurance coverage regulator Irdai has given the ultimate 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 (previously 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 stated in a regulatory submitting.

The basic and medical insurance corporations are the subsidiaries of nation’s largest mortgage lender HDFC Ltd.

As per the scheme of amalgamation via a share swap deal, there might be dissolution of HDFC ERGO Health with out winding up.

Under this, share trade ratio of 100:385 has been okayed by the board of the subsidiary corporations which might imply allocation of 385 shares in HDFC ERGO Health for 100 shares in HDFC ERGO.

Post completion of the merger, HDFC will maintain 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 stated in January this 12 months.

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.

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