MUMBAI: UK’s Standard Life, one of the promoters of HDFC Life Insurance Company, is looking to sell up to 70 million shares or a 3.46% stake in the insurance company through a block deal on Tuesday to raise up to Rs 4,606 crore, according to a term sheet issued by BofA Securities and JP Morgan.
The sale price has been fixed at Rs 658-678 apiece, a 2.6-5.5% discount to Monday’s closing price of Rs 696.20. As of September 30, 2020, Standard Life held 8.88% stake in the company.
Standard Life sold 27.8 million shares of the insurance company in December last year to raise about Rs 1,700 crore to reduce its stake from 10.27% to 8.88%.
The UK-based firm has divested a nearly 26.12% stake in HDFC Life since its IPO in November 2017. Standard Life held a 35% stake pre-initial public offer, which was reduced to 8.88% at the end of December 2020. After Monday’s deal, Standard Life will hold 5.42% in HDFC Life.
HDFC Life shares have gained just 3% in the last six months compared to a 14% jump in the benchmark Nifty.
