HDFC Life jumps 6% on robust management commentary

Shares of HDFC Life jumped 6 percent in early trade on June 16 on post robust commentary by the top management.

"We have typically grown 1.8x to 2x of the private sector and slightly higher as a multiple of the overall industry. May was better than April and hopefully, June will be better than May," MD & CEO Vibha Padalkar told In a CNBC-TV18 on June 16. "That's how the turnaround from being a higher average ticket size focus sector, we are moving into deeper penetration and that's again the right way to do it. "

"Retail AP business we grew 9 percent. This was 1.8x of the sector. Our market share expanded from about 16.5 percent to 16.7 percent. Similarly on group business also we retained our number one position in the private sector," she said.

The insurer's market share grew there as well clocking 25 plus percent growth, which was 2x of the private sector.

She further added, that "In May 2023, there was double-digit growth in the number of policies. The company performed well despite strong base effect due to tax changes in the budget."

Recent developments in the company

In a filing with BSE on June 15, the company said, “The stakeholders relationship committee of the board on June 14, 2023, has allotted 35,226 equity shares to the eligible option holders pursuant to exercise of stock options by them under various employee stock option schemes.”

Follow our live blog for all market action

After the allotment, the company's paid-up equity share capital stood at "Rs 21,49,67,94,560 comprising of 2,14,96,79,456 equity shares of face value of Rs 10 each”.

At 2.04 pm the HDFC life Insurance Company Ltd stock was trading 5.65 percent higher at Rs 610.80 on NSE.

HDFC Life Insurance Company Ltd stock has given a return of 6.22 percent over the last six months against Nifty's 2.68 percent over the same duration.