HDFC Life plans IPO to sell 25% stake for Rs 6,000 crore

The company, a JV between HDFC and Scotland-based Standard Life, wants to keep the share of the two partners at 35 per cent each with equal rights and the remaining for staff as stock options, a senior executive familiar with the matter said.

The company had recently announced a stake sale of 9 per cent in the life business to Standard Life for Rs 1,700 crore, valuing the business at about Rs 19,000 crore, or about 1.9 times the estimated embedded value for 2015-16.

Although this valuation is lower than the Rs 21,000 crore derived from the nearly 1 per cent stake sold to Azim Premji Trust in December 2014, the executive are not comparable said the figures are not comparable since Standard Life has given away its option to increase stake to 49 per cent.

The IPO will be the first from an insurer to hit the Indian market since the government allowed private participation in insurance in 2000 with a cap of 26 per cent for overseas investors. On March 12, the Rajya Sabha passed the amendment to raise the overseas investment limit in insurance to 49 per cent, a measure that had been pending for seven years.

MUMBAI: proposes to hit the market early next financial year and sell a quarter of the stake for Rs 6,000 crore through an initial about public offering, valuing India’s second-largest private life insurer by new business at Rs 25,000 crore



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