HDFC Life promoters to decrease 14.92% stake in IPO

HDFC Ltd and Standard Life, the promoters of HDFC Standard Life Insurance, plans to dilute 14.92 % equity stake in the forthcoming Rs 8,700 crore IPO of the insurance firm. HDFC should be offloading 9.52 % stake while Standard Life will dilute 5.4 %. “The funds raised will be used by HDFC Ltd for its business purposes as the insurance arm has adequate capital needed for growth,” HDFC chairman Deepak Parekh said. 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 HDFC and up to 108,581,768 shares by Standard Life (Mauritius Holdings), 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).