HDFC Standard Life gets approved for IPO

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HDFC Standard Life Insurance is a joint venture between Housing Development Finance Corporation Ltd (HDFC) and Standard Life Aberdeen PLC, a leading, reputed financial company based in the United Kingdom.non_life_insurance_premiums

Securities and Exchange Board of India (SEBI) has given HDFC Standard Life all the necessary approvals to raise an estimated Rs.7500 crore via an Initial Public Offering (IPO). The insurance company had filed draft papers with SEBI in August. The former then attained its ‘observations’ on October 13, 2017, a mandatory document for any company to lift-off a public offering.

The insurance giant is looking to sell off 9.55% stake in their company by providing 1,91,246,050 equity shares via IPO, while Standard Life is selling off 5.42% stake by giving away 1,08,581,768 equity shares.

Presently, HDFC owns 61.41% stake in the company and Standard Life has about 34.86% of the company. The remaining shares lie with employees and PremjiInvest, a recognized private equity and venture capital firm.

HDFC Standard Life Insurance said, “The objects of the offer are to achieve the benefits of listing the equity shares on the stock exchanges. The listing of equity shares will enhance the ‘HDFC Life’ brand name and provide liquidity to the existing shareholders. The listing will also provide a public market for equity shares in India.”

Currently, SBI Life Insurance and ICICI Prudential Life Insurance are the only two listed insurers in the country. State-owned General Insurance Corporation of India’s IPO will be listed next week.

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