HDFC1

Business description from prospectus – HDFC Standard Life Insurance is the most profitable life insurer, based on Value of New Business (VNB) margin, among the top five private life insurers in India (measured on total new business premium) in Fiscal 2016 and Fiscal 2017. Besides consistently being among the top three private life insurers in terms of profitability based on VNB margin, it has also consistently been among the top three private life insurers in terms of market share based on total new business premium between Fiscal 2015 and Fiscal 2017, according to CRISIL. Between Fiscal 2015 and Fiscal 2017, its annualised premium equivalent grew by a CAGR of 14.5%. Its 13th month individual persistency ratio was 73.3%, 78.9%, 80.9% and 81.5% for the period ended March 31, 2015, March 31, 2016, March 31, 2017 and June 30, 2017, respectively.

The company has a healthy balance sheet with total net worth of INR41.5 billion and a solvency ratio of 197.5% as at June 30, 2017, above the minimum 150.0% solvency ratio required under IRDAI regulations. HDFC Standard Life insurance generated Profit After Tax of INR8,869.2 million and delivered a Return on Equity of 25.6%, Return on Invested Capital of 40.7% and Operating Return on Embedded Value of 21.7% during Fiscal 2017. As at June 30, 2017, it had total AUM of INR947.5 billion and Indian Embedded Value of INR132.2 billion.

The company had 58,147 individual agents as at June 30, 2017, which comprise 6.1% of the all private agents in the Indian life insurance industry. It has a pan-India presence, comprising 414 branches and spokes across India as at June 30, 2017, supported by a workforce of 15,406 full-time employees. Its number of major bancassurance partners grew from 31 as at March 31, 2015 to 120 as at June 30, 2017.

Company Promoters:

The Promoters of the Company are:

1. Housing Development Finance Corporation Limited (“HDFC”);
2. Standard Life (Mauritius Holdings) 2006 Limited (“Standard Life Mauritius”); and
3. Standard Life Aberdeen plc (“Standard Life Aberdeen”).

Objects of the Issue:

The objects of the issue are:
1. To achieve the benefits of listing the Equity Shares on the Stock Exchanges and
2. To carry out the sale of Offered Shares by the Selling Shareholders.

Issue Detail:

»»  Issue Open: Nov 7, 2017 – Nov 9, 2017
»»  Issue Type: Book Built Issue IPO
»»  Issue Size: 299,827,818 Equity Shares of Rs 10 aggregating up to Rs 8,695.01 Cr
›  Offer for Sale of 299,827,818 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
»»  Face Value: Rs 10 Per Equity Share
»»  Issue Price: Rs 275 – Rs 290 Per Equity Share
»»  Market Lot: 50 Shares
»»  Minimum Order Quantity: 50 Shares
»»  Listing At: BSE, NSE

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