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HDFC Standard Life sets price band at Rs 275-290 for Rs 8,700-crore IPO

The IPO which closes on November 9 comprises sale of 1,91,246,050 equity shares, amounting to 9.55 per cent stake, by HDFC Ltd and up to 1,08,581,768 scrips, or 5.42 per cent, holding by Standard Life Mauritius.

BT Online        Last Updated: October 31, 2017  | 11:56 IST
HDFC Standard Life sets price band at Rs 275-290 for Rs 8,700-crore IPO

HDFC Standard Life Insurance Company, a subsidiary of mortgage lender HDFC, has fixed its initial public offer price (IPO) band at Rs 275-290 per equity share.

The Rs 8,700-crore IPO opens on November 7.

On Monday, HDFC Chairman Deepak Parekh said: "The funds raised will be used by HDFC Ltd for its business purposes as the insurance arm has adequate capital needed for growth."

The IPO which closes on November 9 comprises sale of 1,91,246,050 equity shares, amounting to 9.55 per cent stake, by HDFC Ltd and up to 1,08,581,768 scrips, or 5.42 per cent, holding by Standard Life Mauritius.

The IPO will open for anchor investors on November 6.

According to merchant banking sources, promoters are expected to get about Rs 7,500 crore from the stake dilution.

At present, HDFC owns 61.41 per cent stake in HDFC Standard Life and Standard Life has about 34.86 per cent stake, while the remaining is with employees and PremjiInvest. The objects of the offer are to achieve the benefits of listing the equity shares on the stock exchanges.

The global coordinators and book running lead managers of the IPO are Morgan Stanley India Company, HDFC Bank, Credit Suisse Securities (India), CLSA India and Nomura Financial Advisory and Securities (India).

The book running lead managers are Edelweiss Financial Services, Haitong Securities India, IDFC Bank, IIFL Holdings and UBS Securities India. The equity shares offered in the IPO are proposed to be listed on the BSE and the NSE.

HDFC Standard Life was established as a joint venture between HDFC and Standard Life Aberdeen plc (global investment company), initially through its wholly owned subsidiary The Standard Life Assurance Company and now through its wholly owned subsidiary, Standard Life Mauritius.

The company has a pan-India presence, comprising 414 branches across India as of September 30, supported by a workforce of 16,544 full-time employees.

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