HDFC Life share price hits fresh high as company mulls fundraising plan; stock zooms 8%

The shares of HDFC Life Insurance Company touched a new all-time high to Rs 775.65 per share after rallying for around 8 per cent on the BSE intraday trade on Thursday. The shares surged as the company in a filing said that a board meeting is scheduled on Friday to consider the fundraising plan. 

The stock of the HDFC Life Insurance breached its earlier high of Rs 746 apiece hit on March 9, 2021.

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The private insurer in a filing on Tuesday, August 31, 2021, said “A meeting of the board of directors of HDFC Life Insurance Company is proposed to be held on Friday, September 3, 2021, to consider issue of equity shares and/or other securities of the Company by way of preferential allotment.”

The stock in the last one month has outperformed the market by surging 13 per cent as compared to a 9 per cent rise in the S&P BSE Sensex. However, it has underperformed by gaining only 5 per cent in the last six months as compared to a 15 per cent gain in the benchmark index.

HDFC Life is a joint venture between HDFC Ltd., India’s leading housing finance institution, and Standard Life Aberdeen, a global investment company. 

The company is a leading long-term life insurance solutions provider in India, offering a range of individual and group insurance solutions that meet various customer needs such as protection, pension, savings, investment, annuity and health.

HDFC Life’s management in its financial year 2020-21 annual report said, “In addition, pandemic-induced awareness, shift in consumer behaviour and robust demographic trends indicate that we are well placed to capture these multi-decade opportunities.”

The counter at around 01:53 pm is trading around 6 per cent higher to Rs 762 per share on the BSE, as compared to a 0.68 per cent gain in the S&P BSE Sensex. The scrip is also the top index gainer and leading the surge in the Nifty50.