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Nov 07, 2017 05:03 PM IST | Source: CNBC-TV18

Could look at raising funds for inorganic growth by issuing shares: HDFC Life

HDFC Standard Life Insurance Company Limited's initial public offering (IPO) opens today and its after 22 years that the group has approached the capital market. The price band for the IPO is fixed between Rs 275 and Rs 290 per share and through the offer the existing shareholders will be diluting approximately 15 percent. CNBC-TV18’s Yash Jain caught up with the man of the moment, Amitabh Chaudhry, MD & CEO of HDFC Life and asked him about the strong anchor investor interest received by the company.

CNBC TV18 @moneycontrolcom

HDFC Standard Life Insurance Company Limited’s initial public offering (IPO) opens today and its after 22 years that the group has approached the capital market. The price band for the IPO is fixed between Rs 275 and Rs 290 per share and through the offer the existing shareholders will be diluting approximately 15 percent. CNBC-TV18’s Yash Jain caught up with the man of the moment, Amitabh Chaudhry, MD & CEO of HDFC Life and asked him about the strong anchor investor interest received by the company.

We had unprecedented, spectacular demand for the anchor book. Close to Rs 50,000 crore was the demand and it was more than 20 times oversubscribed. The big names include JPMorgan, Fidelity, T Rowe Price, Capital he said.

Sovereign funds like GIC, Temasek, Abu Dhabi Investment Authority (ADIA), Kuwait Investment Authority (KIA) also invested in IPO, he added.

At least 22 funds invested in the IPO for the first time in India.

HDFC intends to hold 50.1 percent and Standard Life intends to hold 24.9 percent. Further dilution from Standard Life will be little more than HDFC because HDFC is already close to slightly under 52 percent at this stage, said Chaudhry.

Could look at raising funds for inorganic growth by issuing shares, he further mentioned.

For full interview, watch accompanying video...
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