Standard Life to sell 27.8 million shares of HDFC Life on Thursday

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.

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