HDFC Life’s IPO to open on November 7

Mumbai : Private insurer— HDFC Standard Life Insurance plans to raise Rs 8,700 cr via Initial Public Offer (IPO) which will open on November 7. The company plans to give all of the money raised to its promoters—HDFC and Standard Life (Mauritius Holdings).

HDFC Chairman Deepak Parekh told reporters that the child has matured and now it wants it to go ahead on its own. He added, “The funds raised will be used by HDFC Ltd for its business purposes as the insurance arm has adequate capital needed for growth.” This IPO includes 191,246,050 equity shares by HDFC and up to 108,581,768 equity shares by Standard Life (Mauritius Holdings).

The price band of IPO is Rs 275-290 per equity share and will close on November 9. Parekh believes that pricing is such that it will ‘leave something for the investors’. He also added, “It is not overpriced.” He believes timing of this IPO is good. “It is good time to enter the market.” Adding to it, Vibha Padalkar, ED and CFO said, “There is no consolidation yet in the space. But it will happen.” She added that once stability comes in the sector growth will accelerate.

As of September 2017, the company’s net worth was Rs 44, 760.9 million as per the company’s restated standalone financial information.

The global coordinators and book running lead managers of the IPO are Morgan Stanley India Company, HDFC Bank, Credit Suisse Securities (India), CLSA India and Nomura Financial Advisory and Securities (India). The book running lead managers are Edelweiss Financial Services, Haitong Securities India, IDFC Bank, IIFL Holdings and UBS Securities India.

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