Standard Life plans to sell 1.78% stake in HDFC Life Insurance

The life insurer's new business margin improved significantly in FY19 to 24.6 per cent, from 23.2 per cent in FY18

Standard Life, the joint-venture partner in HDFC Life Insurance, plans to sell 1.78 per cent stake (36 million shares) in the life insurance firm, at a floor price of Rs 390 via an offer for sale (OFS). The stake sale could fetch the JV partner Rs 1,400 crore on full subscription. 

In March, Standard Life had divested 4.93 per cent stake (99.5 million shares), in the life insurer to raise about Rs 3,600 crore.

At the end of March quarter, Standard held 24.66 per cent stake, while HDFC had 51.48 per cent in HDFC Life. Following the OFS, Standard will hold 22.88