HDFC Standard Life Insurance Company Ltd. today fixed a price band of Rs 275-290 per share for its initial public offering.
The public issue will be an offer for sale for nearly 15 percent of the company’s share capital, or 29.9 crore equity shares at a face value of Rs 10 apiece, the company said in a regulatory filing. The offer opens on November 7 and closes on November 9.
The subsidiary of mortgage lender HDFC Ltd. is looking to raise up to Rs 10,000 crore, one banker privy to the development told BloombergQuint earlier.
Through the offer, HDFC plans to reduce its stake in the insurer by 9.6 percent by selling 19.1 crore shares. Its Mauritius-based joint venture partner, Standard Life Plc, will offload another 10.86 crore shares, reducing its stake by 5.4 percent.
The IPO was announced after HDFC Life’s proposed merger with Max Life Insurance was delayed due to regulatory hurdles. Analjit Singh-led Max Group had then called off the deal.
Morgan Stanley, HDFC Bank, Credit Suisse, CITIC CLSA Securities and Nomura Financial Advisory and Securities are managing the issue among others.