News eDaily21 Aug 2017

India:HDFC Standard Life applies to float shares

21 Aug 2017

HDFC Standard Life Insurance is the latest company to apply for an initial public offering, as it submitted draft IPO papers last Friday.

The IPO will be an offer for sale by the company’s promoters Housing Development Finance Corporation and Standard Life (Mauritius Holdings) 2006. HDFC will sell up to 191.25 million shares, while Standard Life will sell up to 108.58 million shares, reported Moneycontrol.

Of the total number of shares on offer, 2.14 million shares will be reserved for purchase by eligible HDFC Standard Life employees, 805,000 shares will be reserved for purchase by eligible HDFC employees and 29.98 million shares will be reserved for purchase by eligible HDFC shareholders.

Therefore, the net offer to the public will consist of around 266.90 million shares. The entire offer will constitute 14.97% of the post-IPO paid-up shares of the company, while the net offer will constitute 13.33%.

In the draft prospectus, HDFC Standard Life said that the IPO is aimed at facilitating the sale of shares offered by shareholders and that the company itself would get none of the proceeds of the issue.

HDFC Standard Life's IPO application follows those of New India Assurance and GIC Re, both of which filed their IPO documents this month. Reliance Capital was reported last week to have filed an application with the IRDAI for an IPO of its nonlife insurance company, Reliance General Insurance.

Last month, SBI Life Insurance and ICICI Lombard General Insurance lodged with the Securities and Exchange Board of India (Sebi) their respective IPO papers.

ICICI Prudential Life is currently the only listed insurer in India, with its shares floated last November.




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