Abrdn to sell 2% stake in HDFC Life Insurance today

13 Sep 2022 , 10:29 AM

On Tuesday, Abrdn, formerly Standard Life, plans to sell 2% of its share in private insurer HDFC Life Insurance Company through block transactions. In accordance with the term sheet, Abrdn (Mauritius Holdings) has reserved 43 million HDFC Life shares at a price ranging from Rs564.1 to Rs578.55 per share. HDFC Life’s shares closed on Monday at Rs580 per share.

The UK-based banking giant might get at least Rs2,425.6 crore from the share sale. At the conclusion of the quarter ending in June 2022, the promoter stake in HDFC Life was 51.2%. HDFC Ltd, a mortgage lender, owns 47.79%, and ABRN, 3.7%.

In order to fund Rs2,000 crore, HDFC Life recently allocated 37.5 million shares to HDFC on a preferential basis. According to the term sheet, HDFC Life’s promoter entities now own a 52.3% share in the insurer, with Abrdn (Mauritius Holdings) holding the remaining 3.7%.

The promoter entity’s ownership will drop to 50.3% following the block exchange, leaving Abrdn with a 1.7% share in the business. The minimum shareholding by promoters or the promoter group of the firm must be maintained at 50% of the paid-up equity capital of the company, according to the insurance regulator’s regulations.

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