UK-based Standard Life, which is a joint venture partner in HDFC Life Insurance, will be selling 1.8% of its stake in HDFC Life Insurance via an offer for sale. The company will be selling 3.6 crore shares in total as part of this deal and will raise around Rs.1,400 crore in the process.
Post Standard Life’s sale of HDFC Life Insurance’s shares, public shareholding in the life insurance firm will increase to around 25.6%, which is marginally over the Securities and Exchange Board of India’s minimum public shareholding limit of 25%. This threshold is applicable for all listed companies within the first 3 years of going public.
HDFC Life Insurance had its first IPO in November 2017. The company was listed on the bourses later the same month.
After the sale, Standard Life will hold a total stake of 22.9% in HDFC Life Insurance, while HDFC, the other key joint venture partner, will continue to hold a 51.5% stake in the insurance firm.
As per a notice that was posted on the website of the Bombay Stock Exchange, Standard Life will be selling 3.6 crore shares that it currently holds in HDFC Life Insurance at a floor price of around Rs.390 apiece. Thus, the company will be able to raise around Rs.1,400 crore from this sale.
The two-phased offer for sale (OFS) is set to open on 3 May 2019 for institutional investors, while the OFS will open on 6 May 2019 for non-institutional entities. DSP Merrill Lynch has been appointed as the broker for this deal.
Source: The Times of India