The British firm would be increasing its stake to 35 per cent from 26 per cent as the government has allowed up to 49 per cent FDI (foreign direct investment) in the domestic #insurance sector.
HDFC said in a regulatory filing that it would sell little over 17.95 crore shares in the insurance joint venture at a price of Rs 95 apiece to Standard Life.
HDFC said Standard Life’s stake in the joint venture was earlier restricted to 26 per cent as per FDI norms. But they had understanding that the British insurer would raise stake to parity with HDFC at such time as legislation allowed.
After the increase in the FDI limit in the sector, the two companies have had discussions and Friday’s agreement will see Standard Life increase its stake in #HDFC Life to only 35 per cent, it added.
Commenting on the development, HDFC chairman Deepak Parekh said: “I am delighted that Standard Life is increasing its stake in HDFC Life to 35 per cent. The founding shareholders are also committed to obtaining a listing for HDFC Life. This will allow investors to participate in the growing Indian insurance sector.”
Standard Life Plc CEO Keith Skeoch said, “The proposed investment demonstrates our long-term commitment to India and the future success of HDFC Life.”
“This transaction is in line with the long-term vision of shareholders to jointly build a world class life insurance company. We continue to focus on long-term protection and saving needs of India and delivering sustainable performance,” HDFC Life managing director and CEO Amitabh Chaudhry said.
Standard Life is listed on the London Stock Exchange and has around 1.2 million individual shareholders in over 50 countries around the world.It has businesses in the UK, Europe, North America, Asia and Australia.