HDFC Life - Exide Life deal: Where should you put your money? Anil Singhvi says its a win-win deal, but INVESTORS of THIS company will benefit more
Mentioning that the future for Exide Industries is exciting, Zee Business Managing Editor Anil Singhvi said that for HDFC Life Insurance and Exide Life Insurance, it is a win-win deal. However, it turns out to be more fruitful for Exide as it sold its insurance arm business above valuations, said the Market Guru.
Mentioning that the future for Exide Industries is exciting, Zee Business Managing Editor Anil Singhvi said that for HDFC Life Insurance and Exide Life Insurance, it is a win-win deal. However, it turns out to be more fruitful for Exide as it sold its insurance arm business above valuations, said the Market Guru.
Singhvi says Exide has been waiting for quite a long to sell its insurance business and it eventually happened with HDFC Life Insurance, a Nifty50 heavyweight, acquiring a 100 per cent stake in the company for Rs 6687 crore.
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The managing editor points out that HDFC Life has end paying more than Exide Life’s valuations as the market estimated the valuations around Rs 28-32, however, it has been sold at near Rs 80, which is way higher than its current valuations.
It’s indeed a good deal for HDFC Life too and it should be satisfied because the company has got a good portfolio business in a kitty, but they have paid more than Exide Life’s valuation, he adds.
It’s a clear-cut Buy for the Exide shares on a short-term basis and on long-term investors should also go for HDFC Life stocks, says the market guru Singhvi. He adds, the market may see profit booking in HDFC Life as the stock has been surging for the past couple of days.
Singhvi says, the most important question is what Exide would do with so much of funds after its insurance business sale, he adds, it’s speculated that the company is aiming to go big in the EV (electric vehicles) segment, as it may do a business expansion or set a battery plant for the same.
Singhvi expects, the share price of Exide Industries would rally up to Rs 250 per share. The stock on Friday surged around 14 per cent to Rs 203 per share on the BSE intraday on the back of HDFC Life and Exide Life deal announced in the early morning trade today.
On the contrary, HDFC Life shares slumped 4 per cent to Rs 728.55 per share on the BSE intraday trade on Friday, after being one of the most gainers at market close on Thursday.
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