HDFC Standard Life Insurance Company, a joint venture between mortgage lender HDFC and Standard Life Plc, UK, is firming up plans to list its shares on the stock exchanges after putting on hold acquisition of rival Max Life Insurance.
The decision to go ahead with the listing plan was taken at HDFC Life's board meeting on Monday, PTI reported, citing a regulatory filing to the Bombay Stock Exchange (BSE) by HDFC.
"The IPO is subject to relevant regulatory and other necessary approvals, as applicable/ required, including that of the Insurance Regulatory and Development Authority of India (IRDA)," HDFC said.
HDFC holds 61.3 percent in the venture while Standard Life has 35 percent stake. Max Life Insurance is a joint venture between listed entity Max Financial Services and Japan's Mitsui Sumitomo Insurance Co. Ltd.
Almost a year ago, in August 2016, the HDFC board had given its go-ahead for the merger of Max Life and Max Financial Services with HDFC Standard Life. But the plan hit a roadblock after regulator IRDA denied approval for the merger, citing the "complex nature" of merging insurance business with a financial company, prompting both parties to "evaluate various options," PTI said.
The original merger plan envisaged amalgamation of Max Life with Max Financial Services after which the insurance business was supposed to be hived off as a separate entity and transferred to HDFC Standard Life Insurance Company, according to the PTI report.
HDFC shares were trading almost flat at Rs 1,661 apiece while Max Financial Services was down 2.5 percent to Rs 584 at around 11.03 am on the BSE.
Max India Limited is part of the $2-billion Max Group that comprises Max Healthcare, Max Bupa Health Insurance and Max Financial Services Limited, according to its portal.