HDFC in an exchange filing declared completion of the share transfer from its insurance arm HDFC Standard Life Insurance, to its British joint venture partner Standard Life. HDFC sold 9 percent stake to UK’s Standard Life for Rs, 1700 crore.
“Pursuant to the requisite approvals, the corporation has completed the transfer of the said shares,” said HDFC in the Bombay Stock Exchange (BSE) filing. After the deal, Standard Life’s stake in HDFC Standard Life will stand at 35 percent. The Indian government allowed upto 49 percent foreign direct investment (FDI) in the insurance sector in 2015. This has led to foreign partners of Indian insurance companies increasing their stake in the domestic insurance joint venture.
A total of 17.95 crore shares were transferred to Standard Life at a price of Rs 95 per share. HDFC’s share in HDFC Standard Life Insurance now stands at 61.65 percent.