Global Investment Company Abrdn, a promoter group firm with headquarters in the UK, sought to sell all of its remaining equity share in HDFC Life Insurance, or 1.66 percent, in a block sale.
Investors were interested in HDFC Life Insurance Company shares on Wednesday because its promoter, Abrdn, was rumored to be selling all of its leftover shares in a big deal. Heavy trading at the markets suggests that the deal went through, but Business Today could not find out who the buyers were.
Global Investment Company Abrdn, a promoter group firm with headquarters in the UK, sought to sell all of its remaining equity share in HDFC Life Insurance, or 1.66 percent, in a block sale. Abrdn is expected to sell 3.57 million shares for between Rs 563 and Rs 585 each.
On the BSE, more than Rs 2,080 crore worth of HDFC Life Insurance shares were traded. On the National Stock Exchange (NSE), Rs 223.33 crore worth of HDFC Life Insurance shares were traded. The buyers and traders’ information will be known after the market closes.
HDFC Life Insurance Company’s stock rose almost 3% to Rs 602.75 on Wednesday before falling back to Rs 691.30 at 9.45 a.m. The value of the company on the stock market was just over Rs 1.27 lakh crore. Tuesday, the stock closed at Rs 585.45.
Abrdn has been reducing its stock in HDFC Life Insurance for a while. With this stake sale, it will leave the company and no longer have to worry about more block deals. The Reserve Bank of India (RBI) recently gave HDFC Bank or HDFC permission to own more than 50% of HDFC Life Insurance and HDFC ERGO.
HDFC Life Insurance said that from January to March, it made a net profit of Rs 359 crore. The profit increase is flat compared to the same time last year, when it was Rs 357 crore. For the March quarter, the private life insurer’s net premium income was Rs 19,426 crore. This was 36% more than the same time last year, when it was Rs 14,290 crore.
In April, KR Choksey set a goal price of Rs 650 for the stock because it thought the company would continue to do well with its new products. It also thought that the Non-Par and Annuity segments would grow, which would make the ULIP mix less extreme.
Emkay Global changed HDFC Life Insurance from hold to buy and set a price goal of Rs 650. According to the report, HDFC Life’s premium valuation compared to its rivals would endure since the company has a “relatively clearer outlook” than its listed competitors.
In 4QFY23, HDFC Life Insurance Company had an APE of Rs 5,160 crore, which is a 54 percent rise from the previous year. At Rs. 4,570 crore, Individual APE was up 60% YoY. HDFC Life wants to grow faster than the industry in the future, according to B&K Securities, which has a “buy” rating on the stock and a new goal price of Rs 612.