HDFC ERGO acquires 100% stake of L&T General Insurance

The Housing Development Finance Corp (HDFC) announced on BSE, that it's subsidiary HDFC ERGO has acquired 100% stake of Larsen & Toubro's insurance arm L&T General Insurance company. 

"The board of Directors of HDFC ERGO General Insurance - a non listed subsidiary of us had approved the acquisition of 100% equity shares in L&T General Insurance for an aggregate amount of Rs 551 crore, subject to reciept of requisite approvals." HDFC said in a statement. 

While announcing the merger deal, HDFC also intimated on BSE, that it completed the second issue of masala bond market aggregating to Rs 500 crore. 

It has commenced its second issue of masala bond on August 31.

On September 2, it further announced about opening of the issue of masala bond to overseas investors, aggregating to an amount upto Rs 1000 crore. 

From the first issue of masala bonds, HDFC raised around Rs 3000 crore. The funds were raised at a fixed semi-annual coupon of 7.875% per annum and had a tenor of three years and a month.