Stocks

Standard Life pares stake in HDFC Life to 14.75%

Our Bureau Chennai | Updated on October 30, 2019 Published on October 30, 2019

HDFC Life logo   -  Twitter/HDFC logo

US-based Capital Group acquires shares worth ₹5,751.5 crore

Standard Life has further reduced its stake in HDFC Life Insurance on Wednesday.

According to block deal data on the BSE, the foreign promoter of HDFC Life Insurance sold 10 crore shares at an average price of ₹575.15. Shares of HDFC Life Insurance hit a new all-time high at ₹643.5 on the BSE and closed at ₹632.45, up 3.62 per cent, over the previous day’s close.

At the end of September 2019, Standard Life (Mauritius Holdings), a foreign promoter entity, held 39.73 crore shares, which represented 19.69 per cent stake in HDFC Life. The other promoter, HDFC, holds 103.85 crore shares (51.48 per cent stake).

With the stake sale, Standard Life stake in the insurance major would reduce to about 14.75 per cent.

The buyers is Capital Group, which bought the shares through various schemes such as Capital Guardian All Country World (Ex-US) Equity Master Fund, World Growth and Income (Luxembourg), Capital International Equity, Global Equity Fund (Canada), New World Fund (Luxembourg), Europacific Growth Trust (US), Growth and Income Fund, World Growth and Income Trust, New World Fund Inc, Euro Pacific Growth Fund, American Fund Insurance Series — Global Growth and Income Fund and American Fund Insurance Series - New World Fund.

Standard Life sold HDFC Life shares worth ₹3,225 crore on August 14, at an average price of ₹480.7. Standard Life is one of the promoters of HDFC Life Insurance.

Global capital market indices provider, MSCI, included HDFC Life on its Global Standard Index from August 28.

The stock has been a stellar performer at the bourses since its listing. In the last one year it gave a return of 71.2 per cent, as against Sensex’s 18.18 per cent. The company hit the stock market in November 2017 at an IPO price band of ₹275-290 a share.

Among the public, foreign portfolio investors hold 15.94 per cent stake while mutual funds 3.27 per cent and  3.86-lakh retail investors,  4.04 per cent.

Published on October 30, 2019
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