Standard Life has expressed interest in increasing its stake in HDFC Life to 35%, HDFC chairman Deepak Parekh revealed at the lender's annual general meeting (AGM) on Tuesday.
Standard Life has expressed interest in increasing its stake in HDFC Life to 35%, HDFC chairman Deepak Parekh revealed at the lender’s annual general meeting (AGM) on Tuesday.
Parekh said, “They (Standard Life) have indicated that they would like to take up to 35% of the company from 26%.”
Parekh also revealed that they could use the initial public offering (IPO) route for the stake hike saying, “There, we will have some possibility of an IPO.”
However, Keki Mistry, Vice-Chairman and CEO, HDFC later said that it is a discussion that has been going on and nothing has been finalised. He added, “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. I would hope that this is cleared up in the next two, three or four weeks at the most”.
HDFC Life is a joint venture between Housing Development Finance Corporation Limited (HDFC), and Standard Life plc, provider of financial services in the United Kingdom. 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 Rs 8,810 crore as on March 2015 and has an assets under management (AUM) of Rs 680 crore in Q1 FY16. It reported a profit after tax (PAT) of Rs 230 crore in June quarter of FY16.