Private sector life insurance company HDFC Standard Life said on Friday it plans to come out with an Initial Public Offer (IPO) in the next financial year.
“We have plans to come out with an IPO in 2010-11 though our board has not yet set a specific deadline. It (IPO) is still in the works,” Mr Paresh Shreesh Parasnis, Executive Director and Principal Officer, told reporters here.
However, Mr Parasnis added that the timing of the IPO would also depend on the Insurance (Amendment) Bill. The Bill aims to enhance the FDI limit in private insurance firms from 26 per cent to 49 per cent.
HDFC Standard Life is a joint venture between housing finance major Housing Development Finance Corporation (HDFC) and Standard Life plc, a financial services provider in the UK.
Mr Parasnis said the company would pump in Rs 350 crore in the current fiscal. He said Rs 50 crore has been injected and the remaining Rs 300 crore would be infused in the next few months.
HDFC Standard Life launched a child plan HDFC Youngstar Super and a pension scheme HDFC Pension Super. It also plans to start three more products – Endowment Super, Endowment Plan and Children’s Plan – by this year-end.
Mr Parasnis said HDFC Standard Life had suffered a loss of Rs 503 crore in 2008-09 as per Indian Accounting Standards. “We would converge our accounting norms with IFRS (International Financial Reporting Standards or the globally acknowledged accounting norms) soon.”
He said the company is likely to break-even in the next two years. On the company’s projections of premium growth in the current fiscal, Mr Parasnis said, “It is likely to be in line with industry estimates. I expect 10 to 15 per cent growth in premium collection.”
Last year, the company had recorded a first premium income of Rs 2,252 crore.