HDFC Life shares drop over 5% on stake sale announcement

Shares of HDFC Life Insurance Company Tuesday fell over 5 per cent after the insurer said its promoter Standard Life will sell up to 4.93 per cent stake.

On the BSE, the scrip opened on a negative note and slipped 5.38 per cent to Rs 368.80.

On the NSE, the shares touched Rs 367.55, down 5.87 per cent.

The insurer said in a regulatory filing on Monday that Standard Life (Mauritius Holdings) 2006 Ltd, one of its promoters, will sell stake through an offer for sale on March 12, and the floor price for the sale will be Rs 357.50 per share.

Standard Life proposes to sell up to 7 crore shares representing 3.47 per cent with an option to additionally sell up to 2.95 crore shares representing 1.46 per cent of the total issued and paid-up capital, it said.

Currently, Standard Life holds 29.2 per cent stake in the life insurance company, while mortgage firm HDFC has a 51.5 per cent stake. After the stake sale, Standard Life's holding in the insurance company will come down to 24.27 per cent.