HDFC jumped 8.26% to Rs 1,193.25 at 15:21 IST on BSE on media reports that its life insurance joint venture with Standard Life plc intends to launch an initial public offer early next financial year.
Meanwhile, the S&P BSE Sensex was up 506.52 points or 1.97% at 26,221.18
On BSE, so far 2.06 lakh shares were traded in the counter as against average daily volume of 1.55 lakh shares in the past one quarter.
The stock hit a high of Rs 1,205.25 and a low of Rs 1,120 so far during the day. The stock had hit a record high of Rs 1,399.80 on 4 March 2015. The stock had hit a 52-week low of Rs 975.25 on 16 October 2014.
The stock had underperformed the market over the past one month till 26 August 2015, falling 18.61% compared with 8.53% fall in the Sensex. The stock also underperformed the market in past one quarter, declining 11.09% as against Sensex's 6.6% decline.
The large-cap company has equity capital of Rs 315.28 crore. Face value per share is Rs 2.
Shares of HDFC witnessed a steep slide recently. The stock lost 15.18% in preceding eight trading days to settle at Rs 1,102.45 yesterday, 26 August 2015, from a recent high of Rs 1,299.80 on 14 August 2015.
According to media reports, HDFC Standard Life Insurance Company (HDFC Life) proposes to hit the market early next financial year and sell a quarter of the stake for Rs 6000 crore through an initial public offer (IPO). HDFC Life is the life insurance joint venture between HDFC and Standard Life plc. Standard Life plc is the leading provider of financial services in the United Kingdom. HDFC Life is India's second largest private life insurance company by new business received premium, with a market share of 15.8% for the trailing 12 month period ended 31 March 2015.
On 14 August 2015, HDFC announced that the company has agreed to sell 17.95 crore equity shares of Rs 10 each of HDFC Life, constituting 9% of the issued and paid-up share capital of HDFC Life, to Standard Life (Mauritius Holdings) 2006 at Rs 95 per share. After the stake sale, HDFC's holding in HDFC Life declined to 61.65% and Standard Life's stake increased to 35%.
HDFC's net profit rose 1.2% to Rs 1360.98 crore on 9.4% rise in total income to Rs 7068.28 crore in Q1 June 2015 over Q1 June 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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