HDFC Standard Life IPO opens today: All you need to know

New Delhi: HDFC Standard Life Insurance, the third largest private sector life insurance company, will open its Rs 8,700-crore initial public offering (IPO) on Tuesday.

Promoters will dilute its 14.92 percent stake in HDFC Standard Life Insurance.

The Initial Public Offer, for which the company set a price band of Rs 275-290, will see HDFC offloading 9.52 percent stake while Standard Life will dilute 5.4 percent.

Currently, HDFC owns 61.21 percent stake in the joint venture which will come down to 51.69 percent, while Standard lifes 34.75 percent will come down to 29.35 percent post issue.

The IPO will open on November 7 and close on November 9.

The funds raised will be used by HDFC Ltd for its business purposes as the insurance arm has adequate capital needed for growth.

The IPO is offering up to 299,827,818 equity shares of the face value of Rs 10 each.

This comprises an offer for sale of 191,246,050 equity shares by Housing Development Finance Corporation and up to 108,581,768 equity Shares by Standard Life (Mauritius Holdings), the promoters of HDFC Life.

The global coordinators and book running lead managers of the IPO are Morgan Stanley India Company, HDFC Bank, Credit Suisse Securities (India), CLSA India and Nomura Financial Advisory and Securities (India).

The book running lead managers are Edelweiss Financial Services, Haitong Securities India, IDFC Bank, IIFL Holdings and UBS Securities India.

The equity shares offered in the IPO are proposed to be listed on the BSE and the NSE.

HDFC Standard Life was one of the first private life insurance companies to register in India and was established as a joint venture between HDFC and Standard Life Aberdeen plc (global investment company), initially through its wholly owned subsidiary The Standard Life Assurance Company and now through its wholly owned subsidiary, Standard Life Mauritius.

The company has a pan-India presence, comprising 414 branches across India as of September 30, supported by a workforce of 16,544 full-time employees.

Five Insurance IPOs, including HDFC Life, will together raise over Rs 44,000 crore from the capital market this financial.

The companies are HDFC Standard Life Insurance, GIC of India, SBI Life Insurance Company and ICICI Lombard General Insurance Company.