HDFC gains over 2% intraday on insurance unit IPO plans

HDFC shares gained over 2 per cent on after its insurance unit HDFC Standard Life on Tuesday announced plans to launch its initial public offer (IPO) wherein parent HDFC Ltd would sell 10 per cent stake.

Written by FE News Desk

Updated: April 20, 2016 17:03 IST

At 10.58 am, HDFC shares were trading 0.95 per cent up at Rs 1138.00. The scrip opened at Rs 1146.35 and has touched a high and low of Rs 1158.50 and Rs 1136.00, respectively in trade so far. (Photo: PTI)

Housing Development Finance Corp Ltd (HDFC) shares gained over 2 per cent on Wednesday after its insurance unit HDFC Standard Life on Tuesday announced plans to launch its initial public offer (IPO) wherein parent HDFC Ltd would sell 10 per cent stake.

At 10.58 am, HDFC shares were trading 0.95 per cent up at Rs 1138.00. The scrip opened at Rs 1146.35 and has touched a high and low of Rs 1158.50 and Rs 1136.00, respectively in trade so far.

Later, the scrip closed 0.98 per cent up at Rs 1,138.40.

While the financial details of the IPO are yet to be worked out, the IPO could be worth at least about Rs 2,000 crore, going by the valuation derived by the private insurer under its earlier off-market stake sale transactions.

In a regulatory filing, Housing Development Finance Corporation Limited (HDFC) said the Board of Directors of its non-listed subsidiary, HDFC Standard Life Insurance Company Limited (HDFC Life), have approved taking steps to initiate the process for an IPO.

HDFC Life is a joint venture between HDFC and British insurer Standard Life.

This article was first uploaded on April twenty, twenty sixteen, at forty-four minutes past eleven in the morning.