Standard Life sells HDFC stake for Rs 1,003 crore

Standard Life intends to increase its stake to a level of parity with HDFC should legislation permit it in the future.

The HDFC stock moved up after the stake sale. The stock closed with a gain of 3.37 per cent at Rs 871.75 on the Bombay Stock Exchange.

Standard Life has a life assurance company, HDFC Standard Life Insurance Company, in which it holds just under 15 per cent and HDFC Asset Management Company, in which it holds 49.9 per cent.

Sandy Crombie, Group Chief Executive of Standard Life, said: “We have a long-standing, close and valuable relationship with HDFC which we hope will continue for many years to come.

The Indian financial services market offers strong long-term growth potential and we believe that we have one of the very best partners in that market, he added.

“This share sale rebalances our holding and allows us to increase our direct interest in our insurance joint venture, which we believe has a great future,” he said.

The government announced its intention to raise the foreign investment cap in insurance to 49 per cent last year, but it has yet to go to Parliament with the proposal.

The country’s communist parties, which support the ruling coalition, oppose the move.

Standard Life is Europe’s largest mutually owned life insurer.