HDFC Standard Life, the third largest private sector life insurance company in India, launched its initial public offer (IPO) yesterday and attracted a subscription rate of around 46% by the end of the day.
The insurer, whose IPO closes tomorrow, would be the third life insurance company to be listed on Indian bourses. It follows on the heels of ICICI Prudential Life and SBI Life.
The issue, targeted to raise INR86 billion (US$1.32 billion), will be sold in the price band of INR275-290.
The company on Monday raised INR23.22 billion from anchor investors which include Singapore's sovereign wealth fund Temasek, Norwegian fund Norges, Kuwait Investment, T Rowe Price, Fidelity, Blackrock and JP Morgan, according to a regulatory filing.
HDFC Life was established in 2000 as a joint venture between HDFC and Standard Life. Currently, HDFC owns a stake of 61.21% in the joint venture, which will be reduced to 51.69%, while Standard Life's 34.75% shareholding will be lowered to 29.35% after the IPO.