Standard Life to divest 3.46% in HDFC Life, price range set at Rs 658-678

At the lower end, the share sale will fetch around Rs 4,606 cr or $621 mn; HDFC Life stock sheds 4.1% at close

London-based Standard Life will divest 3.46 per cent stake (70 million shares) in HDFC Life Insurance Company on Tuesday. 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 last close.

Shares of HDFC Life fell 4.1 per cent to Rs 696 on Monday, ahead of the share sale.

At the lower end, the share sale will fetch around Rs 4,606 crore ($621 million).

Standard Life currently holds 8.8 per cent (180 million) shares in HDFC Life. Following the share sale, its stake will drop to 5.42 per cent.

BofA Securities and JP Morgan are the investment banks handling the share sale. 

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.

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.

HDFC owns 49.97 per cent in HDFC Life.