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

Last week, HDFC Standard Life Insurance Company decided to list its shares through an IPO

Subrata Panda  |  Mumbai 

HDFC
For the financial year ended March 31, 2017, HDFC Life posted a Gross Premium Income of Rs 19, 445 crore and the Profit after Tax stood at Rs892 crore and its net worth stood at Rs 3, 839 crore. 

The Housing Development Finance Corporation (HDFC) and have offered to sell 15 per cent of the paid-up equity share capital in Insurance via an initial public offering (IPO). will sell 9.57 per cent of its stake in Life, whereas will sell 5.43 per cent.
 
HDFC, which holds 61.5 per cent stake in Standard Life, will offload about 191 million equity shares of Rs 10 each through the IPO. Whereas, Standard Life, the UK-based foreign partner in Life holding 35 per cent stake, has decided to sell about 108 million equity shares of Life through the offer.

Ltd informed both the NSE and the BSE about their decision, whereas has informed the London Stock Exchange.

The company is expected to submit the draft red herring prospectus (DRHP) with the regulator by the middle of next month and expects to complete the listing process by December.

Last week, Insurance Company had a board meeting, where they decided to list its shares through an IPO. had told the bourses that they would dilute a maximum of 20 per cent of the paid-up and issued share capital of Life.

After the Insurance Regulatory and Development Authority of India (Irdai) rejected the initial structure of merger between Life and Max Life, the Life board decided to go ahead with their listing plans as no other alternative structure was in place. Moreover, had expressed apprehension of a new structure’s viability and had stated its intent to go for listing at the earliest opportunity.

For the financial year ended March 31, 2017, Life posted a Gross Premium Income of Rs 19, 445 crore and the Profit after Tax stood at Rs892 crore and its net worth stood at Rs 3, 839 crore.

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