HDFC Life Insurance on Monday said one of its promoters, Standard Life, will sell up to 4.93 per cent in the life insurance firm through offer for sale (OFS).
The Standard Life (Mauritius Holdings) 2006 Ltd, one of the promoters of the insurer, will sell stake through OFS on March 12 and the floor price for the sale will be Rs 357.50 per share, HDFC Life said in a regulatory filing.
At the floor price, the company will raise about Rs 3,500 crore.
Standard Life proposes to sell up to 7 crore shares representing 3.47 per cent with an option to additionally sell up to 2.95 crore shares representing 1.46 per cent of the total issued and paid-up capital, it said.
Currently, Standard Life holds 29.2 per cent stake in the life insurance company while mortgage firm HDFC has a 51.5 per cent stake. After the stake sale, Standard life's holding in insurance company will come down to 24.27 per cent.
Standard Life has appointed DSP Merrill Lynch as the broker for the sale of equity stake.
For the third quarter ended December 2018, HDFC Life reported an 18.3 percent growth in profit at Rs 245.63 crore.
The private sector insurer's profit stood at Rs 207.32 crore in the same quarter of 2017.
Total income of the company declined to Rs 9,303.09 crore from Rs 9,684.46 crore in October-December 2017.
Recently, the insurer changed its name to HDFC Life Insurance from HDFC Standard Life Insurance with a view to align the corporate name of the company with its brand name.
First Published: IST