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Last Updated : Aug 14, 2019 10:36 AM IST | Source:

HDFC Life tanks 7% after Standard Life may have sold Rs 3,145 cr shares

After the stake sale, the shareholding of Standard Life reduced to 19.82 percent.

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Shares of HDFC Life Insurance Company fell 7.5 percent intraday on August 14 after reports suggested that Standard Life may have sold major stake in the company through block deals.

About 6.43 crore shares (representing 3.2 percent of total paid-up equity) traded at an average of Rs 486 per share in early trade on August 14.

The transaction was worth Rs 3,145 crore.


CNBC-TV18 had reported a day earlier that Standard Life would sell 2.5 percent with an upsize option of additional 0.7 percent stake in HDFC Life, the country's largest life insurance company by market capitalisation.

Base offer size for stake sale was Rs 2,468.1 crore and upsize option was worth Rs 705.2 crore, the report said.

Standard Life (Mauritius Holdings) 2006 Limited held 23.02 percent stake and parent HDFC held 51.48 percent stake in HDFC Life as of June 2019.

After the stake sale, the shareholding of Standard Life reduced to 19.82 percent.

HDFC Life Insurance posted an 11.7 percent year-on-year growth in the June quarter with standalone profit at Rs 424.62 crore, driven by growth in new business premiums.

New business margins rose to 29.8 percent in Q1, compared to 24.2 percent a year ago. Its individual annualised premium equivalent (APE) rose by 64 percent year on year (YoY) to Rs 1,378 crore in Q1. The new business premium rose by 47 percent YoY to Rs 3,926 crore in the June quarter.

Last week, MSCI Inc, a leading provider of research-based indexes and analytics, added HDFC Life Insurance Company to its Global Standard Index.

The stock has rallied 39 percent in the last six months. It was quoting at Rs 498.70, down Rs 20.40, or 3.93 percent, on the BSE at 1005 IST.

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First Published on Aug 14, 2019 10:36 am
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