Friday, 30 June 2017

HDFC STANDARD LIFE INSUARNCE COMPANY LTD (I.E HDFC LIFE) – IPO BOARD MEETING ON 17TH JULY, 2017



HDFC STANDARD LIFE INSURANCE COMPANY LTD (i.e HDFC Standard life / HDFC Life), was established in Year 2000. HDFC Standard Life is a joint venture between HDFC LTD – 61.53% holding & Standard Life (Mauritius Holdings)-34.94% holding. HDFC Standard Life is an unlisted insurance company and planning for IPO soon.

HDFC Standard Life has 29 individual and 10 group products in its portfolio, along with 8 optional rider benefits catering to a diverse range of customer needs. HDFC Life continues to benefit from having a wide reach with 398 HDFC Life offices in India and 12,000+ distributor touch-points. HDFC Standard Life has an AUM of Rs. 91742 crs for the Year Ended March 2017.

BOARD MEETING FOR IPO – 17th July, 2017

HDFC Life, is going to have is board meeting on 17th July 2017 to decide upon the IPO & the board meeting of HDFC LTD shall be held on 26th July 2017 over the same matter. The Merger proposal of MAX Financial Services Ltd, Max Life Insurance Company Ltd, Max India Ltd and HDFC Life will now take place post IPO as reworking is still going on.



MERGER PROPOSAL PRESENTED IN 2016:  REWORKING IS IN PROCESS

The merger proposal of MAX Financial Services Ltd, Max Life Insurance Company Ltd, Max India Ltd and HDFC Life had received the approval of board in June 2016. The merger proposal was announced by the board in August 2016, but it was refused by IRDAI due to in the structure presented. However, after the application seeking in-principle approval was sent to IRDAI, in November 2016, the regulator expressed concerns around Section 35 of the Insurance Act 1938, which does not allow merger between one insurance business and another (non-insurance) business. So the management is reworking on the structure of merger which will surely take place.

STEPS OF MERGER PROPOSAL: OLD STRUCTURE

Step 1: Max Life Insurance Company Limited will be merged into Max Financial Services Limited Step
Step 2: The life insurance undertaking will be demerged from Max Financial Services Limited into HDFC Life
Step 3: The residual business of Max Financial Services Limited would be merged into Max India Limited
Step 4: HDFC Life would become a listed Company

BENEFIT OF THE PROPOSAL:

The proposed transaction will create a large company with differentiated scale and portfolio, with wider reach to expand in a growing life insurance sector. While the transaction will deliver attractive value proposition for HDFC Life and Max Group shareholders.



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