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HDFC gains on plans to divest stake in life insurance arm

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Capital Market
Last Updated : Apr 21 2016 | 12:02 AM IST

HDFC rose 2.73% to Rs 1,158.05 at 9:50 IST on BSE after the company said it intends to sell up to 10% of the paid-up share capital of its subsidiary HDFC Standard Life Insurance Company through offer for sale in the latter's initial public offer.

The announcement was made before market hours today, 20 April 2016.

Meanwhile, the S&P BSE Sensex was up 132.44 points or 0.51% at 25,948.80.

On BSE, so far 46,000 shares were traded in the counter as against average daily volume of 1.99 lakh shares in the past one quarter. The stock hit a high of Rs 1,158.50 and a low of Rs 1,143 so far during the day. The stock had hit a 52-week high of Rs 1,370.80 on 16 July 2015. The stock had hit a 52-week low of Rs 1,012 on 25 February 2016. The stock had underperformed the market over the past one month till 18 April 2016, sliding 0.03% compared with Sensex's 3.46% rise. The scrip had also underperformed the market in past one quarter, declining 0.58% as against Sensex's 6.73% rise.

The large-cap company has equity capital of Rs 315.97 crore. Face value per share is Rs 2.

HDFC announced that it intends to sell up to 10% of the paid-up share capital of its subsidiary HDFC Standard Life Insurance Company (HDFC Life) through offer for sale (OFS) in the initial public offer (IPO) of HDFC Life subject to market conditions as well as receipt of various applicable approvals including that of Securities and Exchange Board of India (Sebi) and Insurance Regulatory and Development Authority of India (IRDAI) to the extent applicable or required. As on 31 March 2016, HDFC held 61.63% of the issued and paid-up share capital of HDFC Life. Post the sale of shares, HDFC Life would continue to be a subsidiary of HDFC.

HDFC Life reported profit after tax of Rs 818 crore on total income of Rs 17954 crore in the year ended 31 March 2016 (FY 2016). It reported gross premium income of Rs 16313 crore in FY 2016. Net worth as on 31 March 2016 was Rs 3150 crore.

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On consolidated basis, HDFC's net profit rose 11% to Rs 2419 crore on 3% growth in total income to Rs 12306.52 crore in Q3 December 2015 over Q3 December 2014.

HDFC is India's first retail housing finance company and is currently one of the largest originators of housing loans in the country.

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First Published: Apr 20 2016 | 9:46 AM IST

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