UK-based life insurance company Standard Life will increase its stake in HDFC Standard Life Insurance Company to 26% from 14%.The insurance company is a joint venture between the Housing Development Finance Corporation (HDFC) and a group company of Standard Life. HDFC holds 84.2% in the joint venture.Deepak Parekh, chairman, HDFC, said,''Standard Life will increase its stake in the life venture to 26% in a months' time by the return on equity formula. For the general insurance business, we are in talks with four or five international players. The partner will be finalised in a month or so. The partner for the general insurance business will come in at a premium as HDFC is a established brand, and has a set business and distribution network in the country.''HDFC recently bought out Chubb Corporation's 26% stake in HDFC Chubb General Insurance Company, following which it has been scouting for a joint venture partner for its general insurance business.When asked if HDFC is considering listing of the life insurance venture, Parekh said, ''We don't see any need to list the company as the current preferential issue made to the Carlyle Group and Citigroup will bring in enough capital. We plan to invest around Rs 500 crore of the proceeds from the preferential offer in the insurance venture, and the balance of around Rs 1,300 crore will be invested in HDFC Bank's preferential offer."As far as HDFC is concerned, we could consider a domestic issue if our capital requirement is huge. As of now, the preferential issue should adequately capitalise HDFC."The housing finance firm made a profit of around Rs 381 crore through its stake sale in Intelenet.Parekh also added that he could consider a stock split at a right time.
