HDFC Standard Life Insurance Company Limited is a joint venture between Housing Development Finance Corporation Limited, one of India’s leading housing finance institutions and Standard Life Aberdeen plc (one of the world’s largest investment companies), initially through its wholly owned subsidiary The Standard Life Assurance Company and now through its wholly owned subsidiary, Standard Life (Mauritius Holdings) 2006 Limited.
Established in 2000, HDFC Life is positioned as a leading life insurer in India, offering a range of individual and group insurance solutions. Its portfolio comprises various insurance and investment products such as Protection, Pension, Savings, Income and Health. As on June 30, 2017, the Company offered 31 individual and 10 group products, along with 8 optional rider benefits catering to specific needs of customers during each stage of their lives.
HDFC Life has a pan India presence, comprising 414 branches and spokes, and over 11,200 branches across India of its top 15 bancassurance partners, as on June 30, 2017.
NewsBarons provides you the highlights of a media interaction, where Deepak Parekh, Non-Executive Chairman, HDFC Standard Life Insurance says “The economy is going in a right direction and currently is in no danger to the Indian market.”
NB: How much are you raising via IPO?
Deepak Parekh: After 22 years, We are entering IPO market in insurance space known as HDFC Standard Life Insurance.
India is one of the fastest growing economies in the world. The insurance penetration is 3% in India.
We will be raising Rs.8700 crore via IPO. The IPO will open on Tuesday, November 7, 2017, an initial public offering up to 299,827,818 Equity Shares of face value of Rs. 10 each (“Equity Shares”) which comprises of 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) 2006 Limited (together “The Promoter Selling Shareholders” and such offering.
The Offer comprises of Net Offer to the Public of up to 266,895,517 Equity Shares, a reservation of up to 2,144,520 Equity Shares (constituting up to 0.11% of the Post Offer Paid-Up Equity Share Capital) for purchase by the eligible HDFC Life Employees (“HDFC Life Employee Reservation Portion”), reservation of up to 805,000 Equity Shares (constituting up to 0.04% of the Post Offer Paid-Up Equity Share Capital) for purchase by the eligible HDFC Employees (“HDFC Employee Reservation Portion”) and reservation of up to 29,982,781 Equity Shares (constituting up to 1.49% of Post-Offer paid up Equity Share Capital) for purchase by eligible HDFC Shareholders (“HDFC Shareholders Reservation Portion”).
The Offer shall constitute 14.92% of the fully diluted Post-Offer Paid-up Equity Share Capital of the Company, ie; assuming all vested employee stock options and the Net Offer shall constitute 13.28% of the fully vested Post-Offer Paid-up Equity Share Capital of the Company i.e. assuming the exercise of all vested employee stock options.
The Price Band for the Offer is fixed from Rs. 275 per Equity Share to Rs. 290 per Equity Share. The Offer will close on Thursday, November 9, 2017.
The Global Co-ordinators and Book Running Lead Managers are Morgan Stanley India Company Private Limited, HDFC Bank Limited, Credit Suisse Securities (India) Private Limited, CLSA India Private Limited and Nomura Financial Advisory and Securities (India) Private Limited. The Book Running Lead Managers are Edelweiss Financial Services Limited, Haitong Securities India Private Limited, IDFC Bank Limited, IIFL Holdings Limited and UBS Securities India Private Limited.
The Equity Shares offered in the Offer are proposed to be listed on the BSE and the NSE.
NB: What is your take on IPO markets?
Deepak Parekh: About 25 IPOs have done well and nearly Rs. 44,000 crore has raised so far via IPO.The growth in bank IPO index is far better than Sensex index.
NB: What is your take on GDP Growth?
Deepak Parekh: The economy is going in a right direction and currently is in no danger to the Indian market. India’s GDP growth will improve in the next few quarters.
NB: What is your promoter holding?
Deepak Parekh: HDFC owns 61.41% stake in HDFC Standard Life and Standard Life has about 34.86% stake.
NB: Will you need further capital for HDFC Life?
Deepak Parekh: HDFC Life has adequate capital as of now and funds raised will be used by HDFC Ltd for its business purposes.We also expect consolidation happening in the insurance sector.Our margins are nearly 22.4%.
NB: You IPO was delayed because of Max India deal?
Deepak Parekh: HDFC Standard Life Insurance IPO was put on hold for its proposed merger with Max India in absence of regulatory approval.