Standard Life sells 2% stake in HDFC Life for Rs1,890 crore1 min read . Updated: 04 Jun 2020, 08:38 PM IST
Shares were sold at Rs496.40 per share, about Rs5 discount to Wednesday’s closing price of Rs501.40
MUMBAI : Investment firm Standard Life on Thursday sold 40 million shares in HDFC Life Insurance for Rs1,890 crore through a block deal. Shares were sold at ₹496.40 per share, about ₹5 discount to Wednesday’s closing price of Rs501.40.
According to regulatory filings, buyers of the shares included Aditya Birla Sun Life Mutual Fund (Rs258.13 crore), Capital Group World (Rs670.88 crore), Fidelity Investment Funds (Rs10.95 crore), Nomura Funds Ireland PLC (Rs200.21 crore), Vanguard Funds Public Ltd (Rs14.69 crore) and so on. Bank of America Merrill Lynch was managing the share sale for Standard Life.
Shares of HDFC Life gained 3.21% to close at Rs517.50 in Thursday’s trade, while the benchmark index, Sensex lost 0.38% to close at 33,980.70.
The sale will reduce Standard Life’s stake in HDFC Life to 10.27%. Standard Life currently holds a 12.25% in the Mumbai-based insurer.
Last year, Standard Life pared its stake in HDFC Life through a number of transactions. In October, Standard Life sold 4.96% in HDFC Life Insurance to a clutch of institutional investors at Rs575.15 apiece to mop up Rs5,750 crore.
In August, Standard Life sold 3.2% in HDFC Life via block deals. Prior to that, Standard Life had sold 1.78% stake for Rs1,400 crore. In March, it had divested 4.93% stake in the life insurer to raise about Rs3,600 crore.
HDFC Life Insurance reported 15% decline in standalone net profit at Rs311.71 crore for March quarter of 2019-20 against Rs364.01 crore in the same quarter of 2018-19.Total income declined sharply to Rs418.64 crore during the fourth quarter of the last fiscal from Rs14,375.06 crore in the year-ago period.