HDFC Life Insurance Shares Slip After 5% Equity Changes Hands In Large Trades

Shares of HDFC Life Insurance Co. fell to their lowest in a month after 5% of its equity changed hands in four large trades.

The life insurer saw 10.17 crore shares change hands, according to Bloomberg data, becoming the most traded Indian stock by value and volume.

While the buyers and sellers were not immediately known, Standard Life Group, according to a Bloomberg News report, was planning to sell a 3.46% stake HDFC Life Insurance for $640 million (over Rs 4,600 crore) via a block deal.

Standard Life (Mauritius Holdings) 2006 Ltd. was looking to sell 7 crore shares at Rs 658-678 apiece, Bloomberg reported citing terms of the deal. The price range represents a discount of 2.6-5.5% to Monday’s close of Rs 696.20 apiece.

Standard Life has been reducing its holdings in HDFC Life for almost two years. Prior to today’s deal, it has divested 16.46% for Rs 12,943 crore via multiple deals.

  • March 2019: Divested 4.93% stake for Rs 3,600 crore.

  • August 2019: Sold 3.2% stake via block deals for about Rs 3,220 crore.

  • October 2019: Offloaded 4.96% stake for Rs 5,750 crore.

  • June 2020: Pared 2% for Rs 1,890 crore.

  • December 2020: Sold 1.37% stake for Rs 1,703 crore.

Shares of HDFC Life Insurance dropped as much as 3.45% to Rs 672.15 apiece — the lowest since June 1, 2021, before paring losses. Of the 37 analysts tracking the insurer, 25 have a ‘buy’ rating, 10 suggest a ‘hold’ and two recommend a ‘sell’, according to Bloomberg data. The average of the 12-month consensus price target implies an upside of 11.3%.

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