HDFC Life Insurance Shares Jump By More Than 2% After Massive Block Deal

HDFC Life Insurance Company Ltd's shares surged over 2% in morning trade on Tuesday following a massive block deal. Recently, the the UK-based investment company Abrdn said it is planning to sell 4.3 crore shares in the private sector insurer through block deal.

Abrdn is planning to sell up to 4.3 crore shares representing 2 per cent of HDFC Life's outstanding shares through a block deal to raise over Rs 2,425 crore, according to a PTI report.

As of now the share of HDFC Life Insurance Company gained 2.43% at the time of writing the story (11:51 PM) at Rs 594 apiece. The 52-week high of the stock is quoted at Rs 759 apiece and 52-week low is quoted at Rs 497 apiece.

The company has a market capitalization of Rs 1,25,559.34 crore.

Similar movement was seen on the NSE as well, where shares of the company opened at Rs 605 apiece, then touched Rs 589.95, up 1.97 per cent from its previous closing price.

The Edinburgh-based company, which was formerly known as Standard Life Aberdeen, has offered the shares in the price band of Rs 564.1-578.55, which is a discount of up to 2.5 per cent on the scrip's close on Monday in the block deal.

The shareholding of Abrdn, one of the promoters of the insurer, will fall to 1.7 per cent after the trade is executed from the present 3.7 per cent, as per the term sheet. Mortgage major HDFC, the other promoter in the private sector insurer, will continue to hold 48.7 per cent of the company, added the PTI report.

Bofa Securities is the sole bookrunner for the sale of shares.

At the lower end of the offer price range, Abrdn will be booking an income of Rs 2,425.6 crore or USD 305 million.