HDFC Life Insurance will soon receive the IRDAI approval for its upcoming IPO.
Nilesh Sathe, Member (Life), IRDAI told Cafemutual that the insurance regulator has decided to give its go ahead to the life insurer to float their IPO at the recently held board meeting.
Earlier in August, HDFC Life has filed its draft red herring prospectus (DRHP) with SEBI. However, SEBI will give its go ahead once it receives clearance from IRDAI.
In its regulatory filing on August 18, 2017, HDFC Life said that the company would raise capital by selling 15% of its stake.
After India’s largest insurance merger between two prominent life insurers- HDFC Life and Max Life was called off, HDFC Life decided to turn its entire focus on its independent IPO. Now that HDFC Life’s IPO plan is on track, the merger deal could stand a chance, believe market experts.
Recently, five insurance companies have approached SEBI to hit the IPO market. While ICICI Lombard General Insurance and SBI Life Insurance recently received SEBI’s approval for their IPOs, HDFC Life, New India Assurance Company and General Insurance Corporation (GIC Re) await SEBI’s go-ahead.
HDFC Life Insurance is the third largest life insurer with AUM of 91,800 crore as on March 31, 2017. The company had posted a net profit of close to Rs.900 crore last fiscal.