HDFC goes up on Apollo Munich buy buzz

Shares of Housing Development Finance Corporation Limited (HDFC) edged higher in early trade on Monday after Economic Times reported that the country’s largest mortgage lender is in advanced talks to acquire Apollo Munich Health Insurance Co for an approximate valuation of Rs 1,000 crore.

Shares of the company opened at Rs 1,830.05 and touched a high and low of Rs 1,846.20 and Rs 1,828.60, respectively, eventually closing at Rs 1,836.60, up 0.38 per cent.

Benchmark BSE Sensex was up 108 points, or 0.32 per cent, at 33,734 at around the same time.


“HDFC is close to acquiring Munich Re’s health insurance venture in India with Apollo,” the report said. “Since Ergo has a partnership with HDFC in the general insurance space, it was easier for the two to strike the deal.”

HDFC Ergo General Insurance is a joint venture between HDFC and Ergo International AG, part of Germany's Munich Re group, a leading reinsurer in Europe.

HDFC has a 51 per cent stake and Ergo holds 49 per cent. Arpwood Capital is advisor to the deal.

HDFC shares had scaled their fresh 52-week high of Rs 1,982 on January 29, 2018 and 52-week low of Rs 1,460.70 on April 12, 2017.