HDFC Life shares plunge over 5% as promoter Standard Life announces to sell nearly 5% stake

New Delhi: Shares of HDFC Life Insurance Company on Tuesday declined by over 5 percent after the insurer said its promoter Standard Life will sell up to 4.93 percent stake.

On BSE, the scrip ended at Rs 371.45, down 4.71 percent from the previous close. Intraday, it was trading 5.38 percent lower at Rs 368.80.

Similarly, on the NSE, the shares fell 5.12 percent to settle at Rs 370.50. During the day, it touched a low of Rs 367.55.

In terms of equity volume, more than 12 lakh shares were traded on BSE, while over 1.6 crore scrips changed hands on NSE.

The insurer in a regulatory filing on Monday said that Standard Life (Mauritius Holdings) 2006 Ltd, one of its promoters, will sell stake through an offer for sale on 12 March, and the floor price for the sale will be Rs 357.50 per share.

Standard Life proposes to sell up to 7 crore shares representing 3.47 percent stake, with an option to additionally sell up to 2.95 crore shares representing 1.46 percent of the total issued and paid-up capital, it said.

Currently, Standard Life holds 29.2 percent stake in the life insurance company, while mortgage firm HDFC has a 51.5 percent stake. After the stake sale, Standard Life’s holding in the insurance company will come down to 24.27 percent.