The UK-based insurer sells its remaining 1.7 per cent stake in the company
02-Jun-2023 •Angel Mohan Bishnoi
HDFC Life Insurance, established in 2000 as a joint venture between HDFC and Standard Life (now known as abrdn), has made remarkable progress since its inception. It was the first private insurer to receive approval for selling life insurance policies.
However, abrdn has gradually reduced its stake in the company over the last few years. Starting from over 10 per cent in June 2020, abrdn has now completely divested its holdings, with its most recent stake sale of 1.7 per cent.
These strategic stake sales were not unexpected, as they align with abrdn's goal of optimising its investment portfolio following the merger between Standard Life and Aberdeen Asset in 2021. Abrdn has emphasised two key reasons for these divestments:
Despite the announcement of the divestment, HDFC Life's share price has not witnessed any significant movement. Data on the BSE website shows that the shares have been lapped up by both foreign and domestic institutional investors.