HDFC Life has hired Morgan Stanley and Credit Suisse to raise as much as Rs 10,000 crore in an IPO
HDFC Life has hired Morgan Stanley and Credit Suisse to raise as much as Rs 10,000 crore in an IPO. It has scrapped plans(atleast delayed) of a merger with Max Life after nearly a year of negotiations, two people close to the decision said.
This would make it the third major life insurer heading to stock exchanges after ICICI Prudential Life, which listed last September, and SBI Life which has filed an offer document with the markets regulator.
HDFC Standard Life is a joint venture between Housing Development Finance Corp. Ltd and Edinburgh-headquartered Standard Life Plc.
“We will file an application with IRDA (Insurance Regulatory and Development Authority of India) tomorrow (Tuesday) for an IPO and we expect an approval within 30-45 days,” said Amitabh Chaudhry, managing director and chief executive officer of HDFC Standard Life.
Chaudhry added, “We have kept the option for the proposed merger with Max Life open, we still feel there is a lot of synergy in the merger and will benefit both the companies”.
The two companies had, however, mutually extended the merger deadline from 30 June to explore alternative merger structures. They were considering the merger of Max Life and HDFC Life, both unlisted entities, to create a new company, to be tentatively called HDFC Plus. This new company will then incorporate a new subsidiary to which it will transfer the insurance business.
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