HDFC LIFE INSURANCE
Global Investment Company, an Aberdeen, UK-headquartered promoter group, has sought to sell all its remaining stake, or 1.66 per cent, in HDFC Life Insurance in a block sale.
Investors took interest in HDFC Life Insurance Company shares on Wednesday after its promoter Aberdeen was rumored to sell all its remaining stake in a mega deal. Heavy trading in markets suggested the deal had been struck, but Business Today could not identify the buyers.
Global Investment Company, an Aberdeen, UK-headquartered promoter group, has sought to sell all its remaining stake, or 1.66 per cent, in HDFC Life Insurance in a block sale. Eberden is expected to sell 3.57 million shares at Rs 563 to Rs 585.
On the BSE, HDFC Life Insurance shares saw a turnover of over Rs 2,080 crore. Shares of HDFC Life Insurance Company traded at Rs 223.33 crore on the National Stock Exchange (NSE). Details of buyers and sellers will be revealed after the market closes.
Shares of HDFC Life Insurance Company, which had risen nearly 3% to Rs 602.75 on Wednesday, fell back to Rs 691.30 at 9.45 am. The stock market value of the company is just Rs 1.27 lakh crore. The stock was trading at Rs 585.45 on Tuesday.
Abrdn has been reducing its holdings in HDFC Life Insurance for some time. With this stock sale, it will exit the company and not have to worry about more block deals. The Reserve Bank of India (RBI) recently allowed HDFC Bank or HDFC to hold more than 50% in HDFC Life Insurance and HDFC ERGO.
HDFC Life Insurance reported a net profit of Rs 359 crore for the January-March period. Profit growth was flat compared to the same period last year, when it stood at Rs 357 crore. In the March quarter, the private life insurer’s net premium income stood at Rs 19,426 crore. This is 36% higher than Rs 14,290 crore in the same period last year.
In April, KR Choksi set a target price of Rs 650 on the stock as he felt the company would continue to perform well with its innovative products. It thought non-collateral and annuity segments would grow, making the combination of ULIPs less intensive.
MK Global upgraded HDFC Life Insurance from Hold to Buy and set a price target of Rs 650. According to the report, HDFC Life’s premium valuation will be relative to its peers as the company has a “relatively clear outlook” compared to its listed peers.
In 4QFY23, HDFC Life Insurance Company’s APE was up 54 per cent year-on-year to Rs 5,160 crore. Rs. 4,570 crore, the per capita APE increased by 60% YoY. HDFC Life looks set to grow faster than the industry in the near future, according to B&K Securities, which has a “buy” rating on the stock and a new target price of Rs 612.