 "Standard Life gets FIPB nod to raise stake in HDFC Life to 35%")
Standard Life has received approval from the Foreign Investment Promotion Board (FIPB) to increase its stake in HDFC Life Insurance from 26 per cent to 35 per cent.
The foreign insurer will pay Rs 1,705 crore for the nine per cent stake it is buying, valuing the company at Rs 18,951.4 crore.
In August 2015, Housing Development Finance Corporation (HDFC) had said it would sell nearly 179 million equity shares of HDFC Life to Standard Life (Mauritius Holdings) at Rs 95 a share, aggregating to nine per cent of the issued and paid-up share capital of HDFC Life. The insurance regulator’s nod will also be required for the deal.
HDFC Life is a joint venture between HDFC and Standard Life, a provider of financial services in the UK. Standard Life (Mauritius Holdings) holds a 26 per cent stake in the joint venture.
According to HDFC, after the deal, its holding in HDFC Life will be 61.65 per cent and that of Standard Life (Mauritius Holdings) will be 35 per cent. In 2000, HDFC and Standard Life launched a joint venture, HDFC Life, which was the first private life insurance company to be granted a licence to operate in India.
The insurer is expected to be among the first ones from the sector to bring out an initial public offering, which could happen in FY17.
