Standard Life To Sell Stake Worth Rs 1,400 Crore In HDFC Life
Standard Life Aberdeen Plc’s Mauritius arm plans to sell another 1.78 percent stake in HDFC Life Insurance Company Ltd.
The investment firm will sell up to 3.6 crore shares at a floor price of Rs 390 apiece—a discount of about 7 percent to current market price—through an offer-for-sale, according to an exchange filing.
The offer will open for non-retail investors on May 3 and for retail investors on May 6. After the transaction, the promoter’s stake in the insurance company will fall to 22.88 percent from 24.66 percent. If the offer is fully subscribed, Standard Life would raise around Rs 1,400 crore.
This comes nearly two months after the investment company sold 3.47 percent stake in HDFC Life Insurance to meet the market regulator’s public shareholding norms.
HDFC Life Insurance reported a 15 percent jump over the last year to Rs 10,247.5 crore in the March quarter. Its profit after tax rose 5 percent year-on-year to Rs 364 crore.
Higher sales in protection business—that ensures income to a policyholder’s family in the event of death or illness due to a certain type of adversity—and private annuity products improved margin,” Managing Director and Chief Executive Officer Vibha Padalkar told BloombergQuint.
Shares of HDFC Life Insurance today ended 3 percent higher than their previous close. That compares with a flat Nifty Financial Services Index.