Exide Industries shares rose as much as 14 per cent to hit an intraday high of Rs 202.95.Shares of the country's largest battery maker, Exide Industries, rose as much as 14 per cent to hit an intraday high of Rs 202.95 after the company informed exchanges that its board of directors has approved divestment of its entire stake in life insurance business to HDFC Life Insurance.

HDFC Life will acquire 100 per cent stake in Exide Life Insurance for a total consideration of Rs 6,687 crore.

As part of the deal, HDFC Life will pay Rs 725.97 crore in cash and the balance by way of issue 8.70 crore shares at Rs 685 per share to Exide Industries.Exide Life Insurance had a total premium income of Rs 3,325 crore for financial year 2020-21 and as on June 30, 2021 it had assets under management worth Rs 18,78 crore."We believe that transaction can result in value creation for customers, employees, shareholders and distribution partners.

This transaction will provide an opportunity for HLIC and the target to realise synergies arising out of complementary business models," HDFC Life said in a stock exchange filing."The proposed transaction will give customers access to a wider bouquet of products and service touch points.

Employees and agents will benefit from a larger, stronger organisation that realises the synergies arising out of complementary business models built on similar ethos.

The proposed transaction will accelerate the growth of the Agency business of HDFC Life.

Exide Life complements HDFC Life's geographical presence and has a strong foothold in South India, especially in Tier 2 and 3 towns, thus providing access to a wider market." HDFC Life added."This transaction is testimony to the reputation that Exide Life Insurance has built of being a well-managed company.

We look forward to working closely with the HDFC Life team on the proposed transaction.

Being part of one of India's most respected life insurance companies will certainly benefit our customers, employees, agents and partners," said Kshitij Jain, MD - CEO, Exide Life Insurance Company.As of 10:57 am, Exide Industries shares were trading 6 per cent higher at Rs 189.75 while HDFC Life shares fell 3.3 per cent to Rs 734.