HDFC Life gets Sebi’ approval to launch IPO

New Delhi: HDFC Standard Life Insurance Company Ltd has secured capital markets watchdog Sebi’s approval to mop-up about Rs 7,500 crore through its initial share sale offering.

HDFC Standard Life Insurance or HDFC Life is a joint venture between India’s biggest mortgage lender HDFC Ltd and UK’s Standard Life.

The insurance entity had approached Sebi with preliminary papers on August 18 and obtained its “observations” on October 13, latest information with Sebi showed.

The “observations” of Securities and Exchange Board of India (Sebi) is pertinent for any firm planning to float an initial public offer (IPO).

Going by the draft papers, the company’s IPO consist of sale of 191,246,050 equity shares, amounting to 9.55% holding, by HDFC Ltd and up to 108,581,768 equity shares or 5.42%, stake by Standard Life Mauritius.

Currently, HDFC owns 61.41% stake in HDFC Standard Life, Standard Life has about 34.86% and the remaining holding is with PremjiInvest and the insurance firm’s employees.

The public issue is expected to fetch Rs 7,500 crore, sources said.

According to the company, 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 Life said.

Last month, New India Assurance Company had received Sebi’s green signal to launch an IPO.

Presently, ICICI Prudential Life Insurance and SBI Life Insurance are the only listed insurer in India. In addition, state-run General Insurance Corporation of India’s IPO is expected to list next week.

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