New Delhi: HDFC Standard Life Insurance Co. Ltd has received approval from the Securities and Exchange Board of India (Sebi) to raise an estimated Rs7,500 crore through an initial public offering (IPO).
The insurance firm had filed draft papers with Sebi in August and obtained its “observations” on 13 October, which is very necessary for any company to launch public offer, latest update with the markets watchdog showed.
The public issue comprises sale of 191,246,050 equity shares, amounting to 9.55% stake, by HDFC Ltd and up to 108,581,768 scrips, or 5.42%, holding by Standard Life Mauritius, according to the draft red herring prospectus filed with Sebi.
Currently, HDFC owns 61.41% stake in HDFC Standard Life and Standard Life has about 34.86%, while the remaining is with employees and PremjiInvest. According to merchant banking sources, the initial public offer (IPO) is expected to be worth Rs 7,500 crore.
“The objects of the offer are to achieve the benefits of listing the equity shares on the stock exchanges. The listing of equity shares will enhance the ‘HDFC Life’ brand name and provide liquidity to the existing shareholders. The listing will also provide a public market for equity shares in India,” HDFC Standard Life said.
HDFC Standard Life Insurance is a joint venture in the ratio of 61.41:34.86 between India’s biggest mortgage lender HDFC Ltd and UK’s Standard Life.
Morgan Stanley India Company, HDFC Bank, Credit Suisse Securities, CLSA India, Nomura Financial Advisory and Securities are the global co-ordinators, while Edelweiss Financial Services, Haitong Securities, IDFC Bank, IIFL Holdings, UBS Securities are the book running lead managers to the issue.
Last month, New India Assurance Company had received Sebi’s nod to float an IPO. Presently, ICICI Prudential Life Insurance and SBI Life Insurance are the only listed insurer in India. Moreover, state-owned General Insurance Corporation of India’s IPO will list next week.