Home >companies >people >HDFC to reduce stake in insurance venture with Standard Life

Mumbai: Housing Development Finance Corp Ltd (HDFC) will reduce its stake in its insurance venture, HDFC Standard Life, as its joint venture partner has decided to increase its holding, the company said in an announcement late on Friday.

Standard Life Plc will increase its stake in the insurance joint venture to 35% from the current 26%.

“After the increase in the foreign ownership limits in the sector, Standard Life and HDFC have had discussions, and today’s agreement will see Standard Life increase its stake in HDFC Life to only 35%, its preferred long-term shareholding, without parity," HDFC said.

As per the agreement, subject to receiving all the necessary regulatory approvals, Standard Life will acquire 9% of the shares of HDFC Life from HDFC at a price of 95 per share, the company said. HDFC’s shareholding in HDFC Life would then stand at 61.65%.

“ I am delighted that Standard Life is increasing its stake in HDFC Life to 35 %. The founding shareholders are also committed to obtaining a listing for HDFC Life. This

will allow investors to participate in the growing Indian insurance sector," said Deepak Parekh, chairman, HDFC in a press release.

The decision comes after the government decided to increase the foreign investment limit in the insurance sector to 49% from 26% earlier.

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