FII and DII purchase stake in this insurance company after promoters sell stake

HDFC Life Insurance Company Ltd, is a leading private life insurance company in india, offering a wide range of individual and group insurance solutions. HDFC Life has been among the top 3 players within the private sector space with a market share of 17% as of  FY23.

The company’s stock closed at a price of Rs 581 apiece on Thursday from a previous close price of Rs 590.15, with a market capitalization of Rs 1,25,152 crores.

According to a BSE filing, the promoter entity of HDFC Life Insurance business, Abrdn (a UK-based investment business), sold all 3,56,94,105 of its equity shares, or 1.66% of the company, for a total of Rs 2,069 crores at an average price of Rs 570.60 per share.

Foreign funds such as Morgan Stanley Asia, WF Asian Smaller Companies Fund, BofA Securities, Societe Generale, Amazon Market Neutral, and BNP Paribas Arbitrage each bought a portion of the holding. The most significant Fund, Societe Generale, bought 33 lakh shares. 

Domestic institutions include SBI Mutual Fund, ICICI Prudential MF, Nippon India MF, and Aditya Birla Sun Life MF. About 25 lakh shares were purchased by ICICI Prudential MF, 23 lakhs by ABSL MF, and over 1 crore by SBI MF.

The company’s net profit improved by 15% in Q4FY23 to Rs 361 crore from Rs 315 crore in Q4FY22. Furthermore, revenue from operations climbed by 9% to Rs 21,399 crore from Rs 19,576 crore in the previous year’s equivalent period.

On a YoY comparison, the revenue decreased from Rs 71,482 crores during FY 21-22 to Rs 67,125 crores in FY 22-23. For the same time period, The PAT numbers have shifted upwards, from Rs 1,360 crores to Rs 1,326 crores.

According to the latest data pertaining to the shareholding pattern, the promoters hold a 50.31 percent stake, and Foreign Institutional Investors (FIIs) have a 29.85 percent stake in the company for FY 22-23.

Written by  Omkar C

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