UK’s Standard Life, one of the promoters of HDFC Life Insurance Company is looking to sell up to 2.78 crore shares of the insurance company through a block deal on Thursday to raise up to Rs 1,770 crore, according to a term sheet issued by Bank of America.
The sale price has been fixed at Rs 605-636.50 apiece, upto 5% discount to Wednesday’s closing price of Rs 636.7. As of September 30, 2020, Standard Life held 10.27% stake or 20.73 crore shares in the company.
Standard Life sold 4 crore equity shares of HDFC Life worth Rs 1,890 crore through a similar offer in June.
The UK-based firm has divested nearly 19% stake in HDFC Life since January last year. Standard Life held 29.25% stake as of December 2018, which has reduced to 10.27% at the end of September 2020. Post Thursday’s deal, Standard Life will hold 8.88% in HDFC Life.