 "HDFC gains as board approves 10% stake sale in insurance arm")
Housing Development Finance Corporation (HDFC) has edged 3% higher to Rs 1,159 on the Bombay Stock Exchange after the company announced that it has in-principle agreed to sell up to 10% of its stake in insurance arm HDFC Standard Life through offer for sale.
“The board of directors of HDFC Standard Life Insurance Company Limited (HDFC Life), a material non listed subsidiary of the Corporation, at its meeting held on April 18, 2016, approved taking steps to initiate the process for an initial public offer (IPO) by way of offer for sale by the Corporation, up to 10 % of the paid - up and issued equity share capital of HDFC Life,” HDFC said in a statement.
The IPO is subject to relevant regulatory approvals including that of Insurance Regulatory and Development Authority of India, Securities & Exchange Board of India among others, it added.
As on March 31, 2016, the Corporation held 61.63% of the issued and paid-up share capital of HDFC Life.
At 09:50 am, the stock was up 2.6% at Rs 1,156 on the BSE. A combined 1.43 million shares changed hands on the counter on the BSE and NSE so far.
“The board of directors of HDFC Standard Life Insurance Company Limited (HDFC Life), a material non listed subsidiary of the Corporation, at its meeting held on April 18, 2016, approved taking steps to initiate the process for an initial public offer (IPO) by way of offer for sale by the Corporation, up to 10 % of the paid - up and issued equity share capital of HDFC Life,” HDFC said in a statement.
The IPO is subject to relevant regulatory approvals including that of Insurance Regulatory and Development Authority of India, Securities & Exchange Board of India among others, it added.
As on March 31, 2016, the Corporation held 61.63% of the issued and paid-up share capital of HDFC Life.
At 09:50 am, the stock was up 2.6% at Rs 1,156 on the BSE. A combined 1.43 million shares changed hands on the counter on the BSE and NSE so far.
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