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HDFC Life in red after Standard Life plans to offload 7 crore shares; Prabhudas Lilladher says 'hold'

JP Morgan India and BoFA Securities India are the joint bookrunners of the deal. The base offer size of the deal is Rs 4,606 crore at the lower end of the offer price range.

June 29, 2021 / 09:48 AM IST
 
 
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HDFC Life Insurance Company share price traded lower by a percent at open on June 29 after Standard Life will sell 7 crore, or about 3.46 percent of total shares of the company through block deals on June 29.

The price range of the block deal book has been fixed at Rs 658 to 678 per share (5.8 percent-2.7 percent discount to the stock's closing of Rs 696 on NSE on June 28).

JP Morgan India and BoFA Securities India are the joint bookrunners of the deal. The base offer size of the deal is Rs 4,606 crore at the lower end of the offer price range.

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As of the shareholding data available with BSE, Standard Life (Mauritius Holdings) held 17,95,39,209 shares, or 8.88 percent stake, of HDFC Life at the end of March quarter of FY21.

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The stock was trading at Rs 690.60, down Rs 5.40, or 0.78 percent. It has touched an intraday high of Rs 702.20 and an intraday low of Rs 672.15. The scrip also witnessed spurt in volume by more than 738.98 times and was trading with volumes of 107,936,184 shares, compared to its five day average of 104,324 shares, an increase of 103,362.86 percent.

Brokerage firm Prabhudas Lilladher has a hold rating on the stock with target of Rs 725 per share. "HDFC Life retains valuation premium of 65-70 percent to its listed peers and we expect return delta should be much lower with limited triggers in near term. We upgrade to hold from reduce with revised target of Rs 725 from Rs 660 based on 3.6x Sep23 EV (rolled over from Mar FY23 ABV).

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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Moneycontrol News
first published: Jun 29, 2021 09:48 am
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