HDFC Life and Max Life merger plans will no longer initiate even after negotiating deals for about a year. But to raise Rs 10,000 crore via IPO the HDFC Life took support from Morgan Stanley and Credit Suisse.
This transaction will lead HDFC on the top third position as a life insurer in stock exchanges after ICICI Prudential Life and SBI Life. The companys IPO will include part stake sale by Housing Development Finance Co which currently holds 61.6% stake, Standard Life of the UK, may also sell some shares and new shares may also issue by the company.
The merger of HDFC and Max Life is put on hold because the companies didnt get the approval from IRDA.
If Max Life and HDFC are able to obtain all necessary regulatory approvals, HDFC Life board and its promoters would be willing to re-evaluate the option of a merger with Max Life in due course, Board of HDFC stated.