InvestorQ : Why do HDFC life insurance go for OFS?
shivangi Arora made post

Why do HDFC life insurance go for OFS?

Crowny Pinto answered.
2 years ago

Offer for Sale (OFS) is opted when promoters of listed companies sell their share to the public. HDFC life insurance is a joint venture between Standard Life and HDFC, wherein Standard Life has 29.2% in the company while HDFC owns 51.5%. With offloading HDFC life insurance OFS, Standard Chartered is trying to bring down its stake by 5% stake in the company through the OFS.

This decline in stake is done to meet public shareholding norm. As a result, the company opted OFS that experienced an over-subscription of 1.83 times on day 1 and 1.07 times on day 2. With looking at such an overwhelming response it might sell additional 1.46% that is, 2.95 crore shares.