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September 13, 2022

Abrdn divests 2% stake in India’s HDFC Life Insurance

UK-based investment firm Abrdn has offloaded its 2% stake in Indian private insurance entity HDFC Life Insurance Company.

The transaction, executed through abrdn (Mauritius Holdings) 2006 Limited (aMH06), helped the investment company rake in £262m.

It involved the sale of 43 million shares in the insurer through block transaction, at INR574.15 a share.

The deal proceeds will bolster the firm’s capital resources to facilitate investment.

Besides, they will help the firm return capital “in excess of business needs”.

With the sale, aMH06’s stake in the insurer has been reduced to 1.66%.

“Based on the current share price of Rs 590.15, the value of this remaining shareholding would be approximately Rs 21,065bn (£227m).”

Mortgage lender HDFC, the other promoter in the insurer besides Abrdn, will retain a 48.7% interest in the business.

The share sale was handled by BofA Securities. 

Founded in 2000, HDFC Life provides long-term life insurance solutions for customers in India.

The company offers different individual and group insurance solutions to meet various customer requirements such as protection, pension, savings, investment, annuity, and health.

HDFC Life has 372 branches, as well as additional distribution touch-points through various new tie-ups. Its traditional partners include BFCs, MFIs, and SFBs besides new-ecosystem partners.

Meanwhile, in a separate development last month, HDFC Bank reached an agreement to acquire a stake of up to 9.944% in Fairfax Financial Holdings-backed Go Digit Life Insurance.

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