India's oldest private life insurer, HDFC Standard Life is planning to hold its proposed initial public offering (IPO) till 2012, as the company does not find the current valuations attractive.
HDFC Standard Life promoters are planning to dilute 10% of their equity stake in the company. However, it will likely wait till the enterprise valuation touches Rs 180-200 billion, the paper said citing an unidentified company executive.
The company incurred huge losses in the last financial year 2010-11 after the Insurance Regulatory and Development Authority's (IRDA) issued stricter guidelines in September regarding selling of Unit-Linked Insurance Plans (ULIP). The private insurer earns most of its income by selling ULIPs, which are at 79% of its total sales.
However, the company has witnessed growth of 15-17% in new businesses with 37% growth in renewals. Recently, the company announced that its promoters will invest Rs 1.5 billion in the fiscal 2011-12 to its paid-up capital of Rs 21.7 billion. The company has completed 10 years of its operations in India. HDFC Standard Life Insurance is the oldest private life insurance company in India, which forayed into domestic market after deregulation in 1999.
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