HDFC Standard Life IPO priced at upper end; Size Rs 8,695 cr

Housing Development Finance Corporation Ltd or HDFC said the initial public offering of its life insurance unit HDFC Standard Life Insurance has been priced at the upper end of Rs 290 per share.

The IPO will now mop up Rs 8,695 cr from the market.

The shares were being offered in a band of Rs 275 to 290, but due to high demand, have been priced at the highest value within the range.

The offer had seen strong demand, with total bids at 4.9 times of the total shares on offer.

In comparison, other IPOs such as those of ICICI Lombard had seen subscription rates of 1.2-3.5 times.

A total of about 22 cr shares are on offer, and all of them are coming from the promoters HDFC and Standard Life Mauritius. In other words, the IPO proceeds will go to the shareholders, and not to the company.