UK-based Standard Life is reportedly planning to further reduce its stake in HDFC Life Insurance.
According to media reports, the company will divest up to 4.5% in the HDFC life insurance arm.
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The shares to be offered will be priced between INR562 and INR575, according to Bloomberg.
Overall, Standard Life is estimated to raise between INR42bn ($590m) and INR56bn through the share sale. The move also includes an option to sell an additional $200m shares in the company.
The media reports added that Bank of America Merrill Lynch is managing the share sale on behalf of Standard Life.
HDFC and Standard Life are joint venture partners in HDFC Life Insurance.
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By GlobalDataAt the end of second quarter of this year, Standard Life had 24.69% stake in the company, reported Business Standard.
However, by divesting 3.2% in HDFC Life through a block deal in August, the company reduced its stake to less than 20%.
Earlier in March this year, Standard Life sold 4.93% stake in the HDFC Life Insurance company.
Following the reports of share sale, the shares of HDFC Life Insurance jumped more than 5%.
This month, the stock prices have increased nearly 8%.
In the quarter that ended in September, HDFC Life posted a net profit of INR3.09bn ($43.4m). The figure represents a 7.5% increase over last year’s profit of INR2.87bn.
