‘Standard Life keen on raising stake in HDFC Life to 35%’

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Mumbai | Updated: July 29, 2015 3:40:45 AM

Standard Life has expressed interest to increase its stake in HDFC Life to 35%, HDFC chairman Deepak Parekh said at the lender's annual general meeting on Tuesday.

Standard Life has expressed interest to increase its stake in HDFC Life to 35%, HDFC chairman Deepak Parekh said at the lender’s annual general meeting on Tuesday.

“…they (Standard Life) have indicated that they would like to take up to 35% of the company. From 26%, they could go up to 35%,” he said.

Parekh added that it could also use the initial public offering (IPO) route.

However, Keki Mistry, vice-chairman & CEO, HDFC, later said it is a discussion that has been going on and nothing has been finalised.

“Once we finalise what stake Standard Life could take, then, at that stage, we would make a public announcement. At this moment, it is only a discussion.”

HDFC Life is a joint venture between Housing Development Finance Corporation (HDFC), and Standard Life, provider of financial services in the UK.

According to its website, HDFC holds 70.64% and Standard Life (Mauritius Holding) holds 26% of equity in the joint venture, while the rest is held by others.

HDFC Life had an embedded value of R8,810 crore as on March 2015 and assets under management of R680 crore in Q1FY16. It reported a profit after tax of R230 crore in June quarter.

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