HDFC Life drops 6% on stake sale announcement by Standard Life

At present, Standard Life holds 29.2 per cent stake in the life insurance company while HDFC, the majority stakeholder, has 51.5 per cent stake.

Shares of HDFC Life Insurance dropped as much as 5.8 per cent to Rs 367.55 apiece on the National Stock Exchange (NSE) in the early trade on Tuesday after Standard Life Mauritius Holdings, the joint venture partner in HDFC Life Insurance, said it was planning to sell 4.93 per cent stake, or 99.5 million shares, in the life insurance firm at a floor price of Rs 357.50 per equity share. This is supposed to fetch Standard Life close to Rs 3,557 crore.

The stake sale by Standard Life in HDFC Life comes shortly after the stake sale by BNP Paribas Cardif,