HDFC Life receives Sebi`s nod for IPO

HDFC Life Insurance Company has received approval of SEBI to go ahead to raise an estimated Rs. 7,500 crore through an initial public offering. HDFC Life had filed draft papers with SEBI in August and obtained its “observations” on October 13, which is necessary for any company to launch public offer. The public issue comprises sale of 1,91,246,050 equity shares, amounting to 9.55 per cent stake, by HDFC Ltd and up to 1,08,581,768 scrips, or 5.42 per cent, holding by Standard Life Mauritius, according to the draft red herring prospectus (DRHP) filed with SEBI. Currently, HDFC owns 61.41 per cent stake in HDFC Standard Life and Standard Life has about 34.86 per cent, while the remaining is with employees and PremjiInvest. According to merchant banking sources, the initial public offer (IPO) is expected to be worth Rs. 7,500 crore.