HDFC Standard Life Insurance Company (HDFC Life) filed a draft red herring prospectus with SEBI for its Initial Public Offer of 299.8 million shares.
Housing Development Finance Corporation (HDFC) aims to offload up to 191.2 million shares (9.57 per cent stake) and Standard Life, its joint-venture insurance company, will sell up to 108.6 million shares (5.43 per cent stake) through the public offer, according to the prospectus.
HDFC holds 61.5 per cent in the life insurance company. Standard Life, the UK-based foreign partner, holds 35 per cent. Merchant bankers for HDFC Life IPO’s include Morgan Stanley, HDFC Bank, Credit Suisse and Nomura. According to the draft prospectus, the embedded value of HDFC Life was Rs 12,470 crore at the end of March 2017, up from Rs 10,232 crore at the end of March 2016. As on June 30, its embedded value was pegged at Rs13,220 crore.
It had a net worth of Rs 4,150 crore and a solvency ratio of 197.5 per cent on June 30, 2017, above the minimum 150 per cent solvency ratio required under the Insurance Regulatory and Development Authority of India (Irdai) rules.