Standard Life sells 5% stake in HDFC Life Insurance in two tranches

A total of 100.8 million shares were sold in two tranches at Rs 672 and Rs 673; names of buyers couldn't be ascertained

Standard Life said on Tuesday that it divested 5 per cent stake in HDFC Life Insurance Company. A total of 100.8 million shares were sold in two tranches at Rs 672 and Rs 673.

Names of the buyers couldn’t be ascertained.

Standard Life raised a total of Rs 6,784 crore from the share sale.

Shares of HDFC Life fell 1.4 per cent to end at Rs 686.

The price range for the share sale has been fixed at Rs 658 to Rs 678 per share: a discount of between 2.6 per cent and 5.5 per cent to the life insurer’s Monday’s closing price of Rs 696.

Prior to the share sale, Standard Life currently held 8.8 per cent (180 million) shares in HDFC Life. After the share sale, its stake has dropped to 3.8 per cent.

BofA Securities and JP Morgan were the investment banks that handled the share sale.

The JV partner has been pruning its stake in the life insurer at regular intervals. Ahead of HDFC Life's IPO in 2017, Standard Life held 35 per cent stake in the company, while HDFC owned 61.5 per cent.

In December, Standard Life had sold 1.38 per cent stake in HDFC Life at Rs 619.15 per share to raise Rs 1,720 crore.

HDFC owns 49.97 per cent in HDFC Life.