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As on: Sep 16, 2019 06:31 PM
Standard Life of UK to sell 1.78% stake in HDFC Life Insurance
03-May-19   09:39 Hrs IST

Standard Life, the joint-venture partner in HDFC Life Insurance, plans to sell 1.78 per cent stake (36 million shares) in the life insurance firm, at a floor price of Rs 390 via an offer for sale (OFS). The stake sale could fetch the JV partner Rs 1,400 crore on full subscription.

In March, Standard Life had divested 4.93 per cent stake (99.5 million shares), in the life insurer to raise about Rs 3,600 crore.

At the end of March quarter, Standard held 24.66 per cent stake, while HDFC had 51.48 per cent in HDFC Life.

Following the OFS, Standard will hold 22.88 per cent stake and the promoter holding in HDFC Life will decline from 76.14 per cent to 74.36 per cent, making it compliant with the 25 per cent public shareholding norm.

Standard Life has appointed DSP Merrill Lynch as the lead banker to manage the share sale. Earlier, BNP Paribas Cardif sold 9.2 per cent in SBI Life for Rs 4,751 crore. It was one of the largest insurance deals in the country since 2016, when the first insurance firm got listed.