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HDFC Life-Exide Life deal positive for shareholders: Abhishek Jain

HDFC Life-Exide Life deal positive for shareholders: Abhishek Jain thumbnail

Apart from HDFC Life, most of the players are quoting at lower valuations and we continue to maintain as one of our top picks in the insurance space, says Abhishek Jain, Business Development Manager, .

What about the HDFC Life-Exide deal? What does it mean in the medium or long term for both sides of the shareholders?

Our view is this has been positive for the shareholders. We believe there would be good synergies. Exide has a significant presence in tier two three cities and especially in the southern markets. They also have a lot of agency driven business which can help them in terms of market share. The deal will drive cost synergies. The sub optimal output of Exide because of the smaller size of its business would be offset by the merger as it would lead to cost realisation and also fixed cost benefits would be seen further for HDFC Life going forward. The deal is largely in line with people’s expectations. Apart from HDFC Life, most of the players are quoting at lower valuations and we continue to maintain HDFC Life as one of our top picks in the insurance space.

It seems JSPL proposal to sell 96.4% Jindal Power stake to promoter-owned co Worldone has been approved by shareholders at EGM. What does it mean for the company?

Actually one of my colleagues was there at the AGM and what we understand is that this deal is expected to be approved or has been approved. Our view is quite positive. I personally think this can lead to some kind of rerating also and even a much leaner balance sheet. It is a positive deal. It has been done at a lower than what it was initially anticipated price but it will obviously help the company to minimise its debt going forward.

The benefits are going to be changed going forward. The stock has been quoting at a discount to the peers and can be a good opportunity.

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