HDFC Life allots 35.7m shares to HDFC to raise Rs 2,000 cr

HDFC Life Insurance on Friday said it has allotted 35.7 million equity shares to Housing Development Finance Corporation (HDFC), one of the promoters of the company, on a preferential basis for raising Rs 2,000 crore.

In a stock exchange filing, HDFC Life said the capital raising committee of its board has vide its resolution allotted 3,57,94,824 equity shares at a price of Rs 558.74 per share (including premium of Rs 548.74 per share), aggregating to Rs 2,000 crore, to HDFC.

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On Friday, HDFC Life scrip closed 1.43% lower at Rs 576 on the BSE.

Notably, the insurance company on July 29 informed that its board had approved the issuance of equity shares to promoter HDFC for Rs 2,000 crore on a preferential basis. The company’s board of directors approved issuance of 35.7 million equity shares at Rs 558.74 per share, not exceeding Rs 2,000 crore in aggregate, on a preferential basis to HDFC.

In a stock exchange filing, the insurance company had said, “The issue price at which equity shares are to be issued to HDFC Ltd is the higher of the price determined under the valuation report of the registered valuer and the price calculated in accordance with Chapter V of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (SEBI ICDR Regulations).”

Backed by a healthy rise in annualised premium equivalent and a significant decline in Covid-related claims, HDFC Life reported around 22% year-on-year growth in its consolidated net profit to Rs 328.79 crore for the first quarter. The insurer had posted a net profit of Rs 269.55 crore for the year-ago period.