HDFC Standard Life Insurance IPO: Finance Trading Times

HDFC Standard Life Insurance IPO

HDFC Standard Life, the life Insurance unit of HDFC is all set to make a separate listing on the stock markets through an IPO or initial Public offering.

The plans are to list HDFC Standard life as separately listed company by 2009. This may make the Indian stock markets a hot place as major insurance companies have lined up to come out with an IPO in 2009.

The SBI Life Insurance has already declared that it is planning to come out with a IPO in 2009, HDFC Standard Life will be another competitor to the public sector undertaking, now even on the stock markets.

The reason why insurance companies are heading towards stock markets to raise money is because of the government policies. There is no foreign direct investment allowed in Indian Insurance business. Hence, the only way (and the easiest) left for the companies is to head towards the stock markets and raise money.

As of now, HDFC Standard Life is a joint venture between HDFC of India and Standard Life of UK The Standard Life has 26% share while remaining belongs to HDFC, which has divested 7.15% equity in HDFC Standard Life.

There have been lots of reports about Earnings estimates and PE Ratio and other numbers of HDFC standard life Insurance, but they are only estimates. Like Merrill Lynch predicts that HDFC Standard Life will grow by 44% in FY09 and 35% in FY10.
Another Deutsche Bank report mentions that HDFC Standard Life has a persistency of 89% and continues to ensure profitable growth.
However, rising interest rates have been a nightmare for the insurance companies. Hopefully things are expected to stabilize in 2009 when this IPO hits the market. Wait for further developments! Table of Contents
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