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HDFC Life board approves issuance of over 3.5 crore shares to parent HDFC for Rs 2,000 crore

The insurer said the issuance of shares is subject to the approval of the shareholders besides, regulatory/statutory approvals.

July 29, 2022 / 04:24 PM IST
The biggies in the housing finance space - HDFC and State Bank  of India (SBI) - offer an interest rate of 7.55 percent. Canara Bank, too, charges the same rate to its home loan customers seeking a loan of Rs 75 lakh with a tenure of 20 years. The EMI will amount to Rs 60,649

The biggies in the housing finance space - HDFC and State Bank of India (SBI) - offer an interest rate of 7.55 percent. Canara Bank, too, charges the same rate to its home loan customers seeking a loan of Rs 75 lakh with a tenure of 20 years. The EMI will amount to Rs 60,649

HDFC Life Insurance Company on Friday said its board has approved the issuance of over 3.5 crore equity shares to promoter company HDFC for Rs 2,000 crore on a preferential basis.

The company’s board of directors, at a meeting, approved the issuance of 3,57,94,824 equity shares of the company at Rs 558.74 per equity share, not exceeding Rs 2,000 crore in aggregate on a preferential basis to Housing Development Finance Corporation (HDFC), the life insurance company said in a regulatory filing.

The insurer said the issuance of shares is subject to the approval of the shareholders besides, regulatory/statutory approvals.

"The issue price at which the equity shares are to be issued to HDFC Ltd is the higher of the price determined under the valuation report of the registered valuer and the price calculated in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations,” it added.

Shares of HDFC Life were 4.30 per cent higher at Rs 555.55 apiece and HDFC Ltd scrip was up 0.87 per cent at Rs 2,356.40 apiece on BSE.
PTI
first published: Jul 29, 2022 04:24 pm
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