HDFC Life Insurance Co. Ltd may see a reduction in the premium for its shares if it chooses to go ahead with a listing before the completion of its proposed merger with Max Life Insurance Co. Ltd, experts said.
The firm may seek such a listing after the deal with Max ran into regulatory hurdles, said two people with direct knowledge of the development.
“Investors need clarity before investing in any company, and if HDFC Life or Max Life plan to list alone without providing clarity on the merger or about a new merger structure, the company will take a hit on the valuation and it won’t get the fair price or the premium expected,” said Santosh Singh, head of research at Haitong Securities.
