HDFC Standard Life gets SEBI’s approval for IPO

HDFC Standard Life Insurance Company has received a green signal from the Securities and Exchange Board of India (SEBI) to raise an estimated Rs. 7,500 crore through an initial public offering (IPO).

According to the draft red herring prospectus filed with SEBI, the public issue will comprise sale of 19,12,46,050 equity shares, amounting to 9.55 per cent stake, by HDFC Ltd and up to 10,85,81,768 scrips or 5.42 per cent, holding by Standard Life Mauritius.

Currently, HDFC owns 61.41 per cent stake, Standard Life has about 34.86 per cent stake and the rest is with employees and PremjiInvest.

“The objects of the offer are to achieve the benefits of listing the equity shares on the stock exchanges. The listing of equity shares will enhance the ‘HDFC Life’ brand name and provide liquidity to the existing shareholders. The listing will also provide a public market for equity shares in India,” HDFC Standard Life said in its filing.

Morgan Stanley India Company, HDFC Bank, Credit Suisse Securities, CLSA India, Nomura Financial Advisory and Securities are the global co-ordinators of the issue, whereas, Edelweiss Financial Services, Haitong Securities, IDFC Bank, IIFL Holdings, UBS Securities are the book running lead managers to the issue.