Receives bids for 25.46 crore shares
The initial public offering (IPO) of HDFC Standard Life Insurance Company received bids for 25.46 crore shares, on the second day of bidding for the IPO, data on NSE showed as at 16:45 IST. The IPO was subscribed 1.16 times. The price band for the IPO has been fixed at Rs 275 to Rs 290 per share. The IPO opened for bidding yesterday 7 November 2017 and closes tomorrow, 9 November 2017.
Ahead of the IPO, the company's board finalized allocation of 8 crore shares to 126 anchor investors at a higher end of the IPO price band at Rs 290 per share, aggregating to Rs 2321.98 crore.
The IPO comprises sale up to 29.98 crore equity shares, representing about 14.92% of its equity share capital for cash, through an offer for sale by HDFC and Standard Life Mauritius. The offer for sale (OFS) is of up to 19.12 crore equity shares by HDFC and up to 10.85 crore equity shares by Standard Life Mauritius. The entire proceeds from the OFS will be paid to the selling shareholders. The OFS will mop up proceeds of Rs 8245.26 crore at the lower price band of Rs 275 per share and Rs 8695.01 crore at the upper band of Rs 290 per share.
The objects of the offer are to achieve the benefits of listing the equity shares on the stock exchanges. HDFC Life's listing will be an IPO after 22 years from the HDFC group companies. The listing of the 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 the equity shares in India. No proceeds from the offer will be received by the company.
On a consolidated basis, HDFC Standard Life Insurance Company reported 8.59% rise in net profit to Rs 886.92 crore on 68.7% rise in total income to Rs 30784.80 crore in the year ended 31 March 2017 (FY 2017) over FY 2016.
HDFC Standard Life Insurance Company is among the top three life insurers in India by market share in new business premium, one of the most profitable life insurers based on the value of new business (VNB) margins and among the top five private life insurers in India. Established in 2000 as a joint venture between HDFC, one of India's leading housing finance institutions, and Standard Life Aberdeen Plc, one of the world's largest investment companies, initially through wholly owned subsidiary The Standard Life Assurance Company and now through wholly owned subsidiary Standard Life Mauritius.
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