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HDFC gains on signing agreements to buy Apollo Munich

Capital Market 

HDFC was up 0.17% to Rs 2,182.05 at 09:29 IST on the BSE after the company announced that it would acquire 51.2% stake in Apollo Munich Health Insurance Company.

The announcement was made after market hours yesterday, 19 June 2019.

Meanwhile, the S&P BSE Sensex was down by 135.69 points, or 0.35% to 38,977.05.

On the BSE, 6340 shares were traded in the counter so far compared with average daily volumes of 57,000 shares in the past two weeks. The stock had hit a high of Rs 2,184.55 and a low of Rs 2,166.75 so far during the day. It hit a 52-week high of Rs 2,234 on 4 June 2019 and a 52-week low of Rs 1,646.00 on 23 October 2018.

HDFC announced that the company would acquire 51.2% stake in Apollo Munich Health Insurance Company from Apollo Energy Company and Apollo Hospitals Enterprise. The total consideration of acquiring 18.39 crore (51.2% stake) equity shares of Apollo Munich Health Insurance Company is Rs 1346.84 crore. Apollo Munich is licensed as a general insurer and specializes in the health insurance business in India.

HDFC further announced that its board has granted it's no objection to the proposed merger of Apollo Munich Health Insurance Company with HDFC ERGO General Insurance Company, a subsidiary of the corporation, subject to regulatory approvals. The time period for the proposed acquisition and the proposed merger is four months and nine months, respectively.

HDFC's net profit rose 26.8% % to Rs 2861.58 crore on a 24.3% rise in total income to Rs 11586.58 crore in Q4 March 2019 over Q4 March 2018.

HDFC is India's leading mortgage lender and a well established financial conglomerate.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, June 20 2019. 09:31 IST