Standard Life, the co-promoter of HDFC Life Insurance Co. Ltd, is selling a 3.46% stake in the company, worth at least $621 million ( ₹4,606 crore) through a block deal, according to the deal terms seen by Mint.
Standard Life (Mauritius Holdings) 2006 Ltd currently owns an 8.88% stake in the life insurance company.
Shares are being offered to investors in the price range of ₹658 to ₹678 per share, a discount of 5.5-2.6% to the closing price of ₹696 per share on Monday, according to the deal terms.
Investment banks JPMorgan and Bank of America are managing the share sale.
Standard Life has been selling down its stake in HDFC Life for a while now. In December, Standard Life sold a 1.37% stake in the company for ₹1,703 crore. Earlier in June 2020, the firm had sold a 2% stake for ₹1,890 crore.
In 2019 too, Standard Life pared its stake in HDFC Life through a number of transactions.
In October 2019, Standard Life sold 4.96% stake to a clutch of institutional investors at ₹575.15 apiece to mop up ₹5,750 crore, while in August 2019, it sold 3.2% in HDFC Life through block deals and in March 2019, it had divested 4.93% stake in the life insurer to raise about ₹3,600 crore.
{{/usCountry}}In October 2019, Standard Life sold 4.96% stake to a clutch of institutional investors at ₹575.15 apiece to mop up ₹5,750 crore, while in August 2019, it sold 3.2% in HDFC Life through block deals and in March 2019, it had divested 4.93% stake in the life insurer to raise about ₹3,600 crore.
{{/usCountry}}HDFC Life went public in 2017 in an IPO where HDFC Ltd and Standard Life had sold shares worth Rs8,695 crore. In April, the company had announced a bonus of ₹2,180 crore for its policyholders. It exceeded the previous year’s bonus by 44%, and 15.49 lakh holders were eligible for it.