The board of HDFC Life, one of the country’s leading private sector life insurance companies, has approved an initial public offering (IPO), sources privy to the developments told CNBC-TV18. HDFC Life will continue looking at Max Financial Services merger proposal along with IPO, they said.
Moneycontrol had first reported about the likelihood of approval on June 29. “IPO will happen first for sure. The merger will take its own sweet time to happen. We will decide on the IPO dates in our Board meeting in July. The reworking on the merger would be post the IPO. We cannot keep waiting as we are ready to go public,” a company official had told Moneycontrol then.
While HDFC Life's Board of directors met on Monday, a meeting of the Board of directors of Housing Development Finance Corporation (HDFC) is now scheduled to be held on July 26.
In June 2016, Max Financial Services and HDFC had said they had received a board approval for the merger of their life insurance businesses, Max Life and HDFC Life, respectively.
The merger of HDFC Life and Max Life, which was announced in August 2016, ran into rough weather after the insurance regulator Insurance Regulatory and Development Authority of India (Irdai) refused to approve the merger structure in its current form.Here, Max Life was to merge with its holding company Max Financial Services first, which would, in turn, would merge with HDFC Life. Since Max Financial Services is already listed, HDFC Life would get auto-listed post the merger.