Standard Life to liquidate 4.93 per cent stake in HDFC Life
Standard Life will sell 4.93 per cent stake in HDFC Life Insurance for Rs. 3,570 crore in order to comply with the public shareholding norm. Standard Life is the joint venture partner in HDFC Life Insurance. Standard life holds 29.2 per cent whereas HDFC holds 51.5 per cent.
Standard Life sold 7 crore shares which is 3.47 per cent of the total equity of HDFC Life Insurance company on March 12 through an offer for sale. There is an option to offload an additional 2.95 crore shares or 1.46 per cent of equity in case of oversubscription. The floor price of Rs. 357.5 per share is at an 8.2 per cent discount to Monday’s closing price of Rs. 389.8 per share.
As per SEBI’s minimum public shareholding norms, promoters of HDFC Life Insurance Company need to reduce 5.71 per cent stake before November 2020. At present, the combined shareholding of the joint venture partners stands at 80.71 per cent. Standard Life’s stake in HDFC Life will drop to 24.27 per cent.