Housing Development Finance Corporation (HDFC) and its subsidiary HDFC ERGO have received the necessary regulatory approvals to acquire up to 51.2 per cent stake in Apollo Munich Health Insurance.
In a regulatory filing on Thursday, HDFC said the last required clearance was provided by Insurance Regulatory and Development Authority of India (IRDAI) on January 1.
The National Housing Bank, Competition Commission of India (CCI) and Reserve Bank of India (RBI) had already granted approval for the deal.
In June 2019, HDFC had announced entering an agreement for acquiring up to 51.2 per cent of equity share capital of Apollo Munich with HDFC ERGO General Insurance Company, a subsidiary of HDFC.
Post the completion of proposed acquisition, Apollo Munich will be merged with HDFC ERGO, subject to the approval of the Mumbai bench of the National Company Law Tribunal.
Further, under the agreement, Apollo Hospitals Enterprise will sell its entire stake of 9.96 per cent in Apollo Munich.
Shares of Apollo Hospitals surged post announcement of the approvals. The shares settled at Rs 1,493.35 on the BSE, higher by Rs 66.45 or 4.66 per cent from its previous close.
Shares of HDFC settled at Rs 2,466.25 on the BSE, higher by Rs 32.50 or 1.34 per cent from its previous close.