HDFC, Standard Life to sell total 15% stake in HDFC Life via IPO

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Published: July 29, 2017 3:55:16 AM

Housing Development Finance Corporation (HDFC) and Standard Life (Mauritius Holdings) have offered to sell a total 15% stake in their life insurance venture through an initial public offering (IPO), according to statements by the companies.

Housing Development Finance Corporation, HDFC, Standard Life, IPO, HDFC, Standard Life to sell total 15% stake in HDFC Life via IPOHousing Development Finance Corporation (HDFC) and Standard Life (Mauritius Holdings) have offered to sell a total 15% stake in their life insurance venture through an initial public offering (IPO), according to statements by the companies.(Image: IE)

Housing Development Finance Corporation (HDFC) and Standard Life (Mauritius Holdings) have offered to sell a total 15% stake in their life insurance venture through an initial public offering (IPO), according to statements by the companies. While HDFC will offload 9.57% of equity paid-up, Standard Life would dilute 5.43% in the IPO. “In this connection, we wish to inform you that the corporation has approved offering of up to 19.12 crore equity shares of Rs 10 each of HDFC Life, a material non-listed subsidiary of the corporation,” HDFC said in an exchange filing.

It also said the size of the offer, price and other details of the IPO will be determined in due course. The board of HDFC Life had passed a resolution approving the (IPO) by way of offer for sale of up to a maximum of 20% in HDFC Life on July 17. Standard Life in a regulatory filing said, “Standard Life notes that in connection with the proposed initial public offering of HDFC Life, the board of directors of (Mauritius Holdings ) has today approved the offer for sale by the company of up to 10.85 crore equity shares of HDFC Life in the IPO.”

As on March 2017, HDFC and Standard Life holds 61.53% and 34.94%, respectively, in HDFC Life. Azim Premji Trust owns 0.95% in HDFC Life and the remaining stake of 2.58% are held by other shareholders.  For FY17, HDFC Life had gross premium income of Rs 19,445 crore on total income of Rs 22,189 crore. Its PAT was Rs 892 crore. HDFC Life has decided to go ahead with its IPO after merger with Max Life Insurance was rejected by Irdai citing violation of Section 35 of the Insurance Act.

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