(PTI) Shares of HDFC Life Insurance Company surged 2 per cent in morning trade after the UK-based investment company Abrdn said it is planning to sell 4.3 crore shares in the private sector insurer through block deal.
Abrdn is planning to sell up to 4.3 crore shares representing 2 per cent of HDFC Life's outstanding shares through a block deal to raise over ₹2,425 crore.
On BSE, HDFC Life stock opened at ₹601, then gained 2.60 per cent to touch ₹606 in initial deals.
Similar movement was seen on the NSE as well, where shares of the company opened at ₹605 apiece, then touched ₹589.95, up 1.97 per cent from its previous closing price.
The Edinburgh-based company, which was formerly known as Standard Life Aberdeen, has offered the shares in the price band of ₹564.1-578.55, which is a discount of up to 2.5 per cent on the scrip's close on Monday in the block deal.
The shareholding of Abrdn, one of the promoters of the insurer, will fall to 1.7 per cent after the trade is executed from the present 3.7 per cent, as per the term sheet. Mortgage major HDFC, the other promoter in the private sector insurer, will continue to hold 48.7 per cent of the company.
Bofa Securities is the sole bookrunner for the sale of shares.
At the lower end of the offer price range, Abrdn will be booking an income of ₹2,425.6 crore or USD 305 million.