HDFC Life board approves issuance of over 3.5 crore shares to parent HDFC

 HDFC Life Insurance Company on Friday said its board has approved the issuance of over 3.5 crore equity shares to promoter company HDFC for Rs 2,000 crore on a preferential basis.

The company's board of directors, at a meeting, approved the issuance of 3,57,94,824 equity shares of the company at Rs 558.74 per equity share, not exceeding Rs 2,000 crore in aggregate on a preferential basis to Housing Development Finance Corporation (HDFC), the life insurance company said in a regulatory filing.

The insurer said the issuance of shares is subject to the approval of the shareholders besides, regulatory/statutory approvals.

"The issue price at which the equity shares are to be issued to HDFC Ltd is higher of the price determined under the valuation report of the registered valuer and the price calculated in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations," it added.

Shares of HDFC Life were 4.30 percent higher at Rs 555.55 apiece and HDFC Ltd scrip was up 0.87 percent at Rs 2,356.40 apiece on BSE.