HDFC, and its foreign partner Standard Life, plan to raise as much as `8,700 crore by selling their stakes in subsidiary HDFC Life Insurance Company , valuing the insurer at `58,000 crore.
The price band ranges from `275 to `290 per share. HDFC will sell 9.57% and Standard Life Mauritius Holding 5.43%. The offer will open for subscription on November 7 and will close on November 9. The company will list on November 17.
The offer is equivalent to 15% of the total post-paid equity share capital of the company . Investment banks, including Credit Suisse and Morgan Stanley , are working on the IPO. HDFC will raise `5,800 crore and Standard Life `2,900 crore at the top end of the price band, making it the biggest IPO in the life insurance sector.
Deepak Parekh, chairman, HDFC, said that the response of retail investors depends on the valuation and the disappointment has been because they did not make money as the pricing was not correct. “The growth in IPO index is 40%, when Sensex is up 20%,“ said Parekh. “It is an excellent time to enter the market.“
Source: Economic Times
Date: 31st October 2017