MUMBAI: Shares of HDFC Ltd rose by nearly 3 per cent today after its subsidiary HDFC Standard Life announced plans to launch its initial public offer in which the company would sell 10 per cent stake.
After a positive opening, the stock further gained 2.76 per cent to Rs 1,158.50 on BSE.
On NSE, shares of the company climbed 2.31 per cent to Rs 1,158.65.
The first life insurer in the country to initiate an IPO process, HDFC Standard Life yesterday disclosed plans to launch the share sale.
While financial details are yet to be worked out, the IPO could be worth at least about Rs 2,000 crore, going by the valuation derived by the private insurer under its earlier off-market stake sale transactions.
In a regulatory filing, Housing Development Finance Corporation (HDFC) said the board of directors of its non-listed subsidiary, HDFC Standard Life Insurance Company (HDFC Life), has approved steps to initiate the process.
The IPO will be by way of an offer for sale by HDFC Ltd of up to 10 per cent of its stake in the insurance company.
In a separate filing, HDFC said it has "in-principle" agreed to sell up to 10 per cent stake held in HDFC Standard Life Insurance Company.
The IPO is subject to various regulatory approvals, including by regulators Irdai and Sebi.