HDFC Life Insurance Ltd had a series of block deals on the exchanges on Tuesday, with around 101 million shares comprising 5 per cent stake in the company, changing hands, as per a Bloomberg report. Details of the buyers and sellers were not available. The stock declined 3.4 per cent to hit a low of Rs 672.15 apiece.
In the morning, the scrip traded at Rs 693.90 on BSE, down 0.3 per cent from its previous close. On 28 June, media had reported that Standard Life, co-promoter of HDFC Life Insurance Co Ltd, was selling a 3.46 per cent stake in the company, worth at least $621 million ( Rs 4,606 crore) through a block deal. Shares are being offered to investors in the range of Rs 658-678 apiece, a discount of 5.5-2.6 per cent to the closing price of Rs 696 per share on Monday, according to the deal terms.
Standard Life (Mauritius Holdings) 2006 Ltd currently owns an 8.88 per cent stake in the life insurance company. Investment banks JP Morgan and Bank of America are managing the share sale. Standard Life has been paring down its stake in HDFC Life for a while now.
Stock Covered in the news