In its two-day offer for sale issue or OFS, HDFC Life Insurance managed to garner decent bids from non-retail investor class with subscription of as much as 21% till 12:40 pm on Tuesday.
The institutional investor class made bids for 1.30 crore shares as against the total non-retail quota of 6.30 crore shares. 90% of the issue size of HDFC Life OFS has been reserved for the non-retail investor category i.e. institutional investors and the remaining can be subscribed to by the retail investor category, who can participate on Wednesday.
The floor price for the HDFC Life OFS has been fixed at Rs. 357.5. In the offer, the insurance company has made an offer of up to 7,00,00,000 equity shares with an option to sell an additional 2,95,00,000 equity shares.
To comply with the market watchdog's minimum public shareholding norms, Standard Life, the promoter company of HDFC Life Insurance was required to bring down its stake in the company by 5.71%. Currently, Standard Life own 29.2% stake in the insurance arm whereas HDFC holds another 51.5% stake in the insurance company.
Post the OFS issue, the holding of Standard Life in HDFC Life will be reduced to 24.27%. Through the sale, Standard Life will be able to garner close to Rs. 3,570 crore.