Promoter group Abrdn likely to offload entire stake in HDFC Life via block deal: Report

UK-based global investment company Abrdn is likely to offload its entire stake in HDFC Life via a block deal, which will probably take place on Wednesday.

According to reports, Abrdn, which is part of the promoter group of HDFC Life, will sell 3.57 crore shares or 1.66% stake in the company. The shares are being offered at a price of Rs 563-585 apiece. On Tuesday, HDFC Life shares closed 1.72% higher at Rs 589 on the NSE. If we consider the lower end, the shares are being offered at a marginal discount of 5%.

HDFC Life is a majority promoter-owned company with 50.31% stake. Apart from Arbdn, another promoter HDFC owns about 48.65% stake in HDFC Life, as of March quarter. Earlier, the RBI has given selective relief to HDFC Bank as part of its merger with HDFC, which allows HDFC Bank or HDFC to increase the shareholding to over 50%.

Meanwhile, public shareholders have about 49.66% stake in the company. Among the public investors, mutual funds own about 4.09%, while foreign investors have nearly 30% in the company.

During the March quarter, HDFC Life Insurance reported a net profit of Rs 359 crore. The profit growth is flat compared with Rs 357 crore in the same period last year. The insurer's net premium income came in at Rs 19,426 crore for the March quarter, 36% higher compared with Rs 14,290 crore in the same period last year.

Meanwhile, first-year premium income for the quarter rose 73% to Rs 4,467 crore during the reporting period. The company's total annual premium equivalent (APE) for the financial year 2022-23 stood at Rs 13,336 crore, while individual APE was at Rs 11,401 crore.

HDFC Life said FY23 metrics are on a merged basis and hence not comparable with prior years.