Irdai red flags HDFC Life, Max Life merger

Firms working on new deal; HDFC Life plans IPO

The Insurance Regulatory and Development Authority of India (Irdai) rejected the country’s largest life insurance merger deal between HDFC Standard Life Insurance (HDFC Life) and Max Life Insurance on Wednesday.

“Further to the representations made to the Irdai, it has on June 7... reaffirmed its original position... HDFC Life and Max Life remain committed to the merger and are evaluating various options,” HDFC Life’s statement said on Thursday. Max Financial Services also issued a similar statement to stock exchanges.

Senior HDFC officials told Business Standard that while both companies would continue to work towards a merger, an initial public offer