Insurance regulator Irdai has given its final nod to the amalgamation of HDFC ERGO Health Insurance with HDFC ERGO General Insurance.
In late September, the National Company Law Tribunal, Mumbai gave a green signal to 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 the merger of HDFC ERGO Health with and into HDFC ERGO,” said HDFC in a regulatory filing.
The general and health insurance companies are the subsidiaries of India’s largest mortgage lender HDFC Ltd.
According to the scheme the merger will be done through a share swap deal and there will be dissolution of HDFC ERGO Health without winding up.
As per the scheme, share exchange ratio of 100:385 has been cleared 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% 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 ₹10 each held in HDFC ERGO Health as on the record date, 100 shares of ₹10 each of HDFC ERGO would be allocated,” HDFC said in January this year.
Prior to this, HDFC ERGO acquired a majority shareholding in Apollo Munich Health Insurance Co Ltd.