In an interview to CNBC-TV18, Amitabh Chaudhry, managing director and chief executive officer, HDFC Lifesays the company's stake sale to Azim Premji Trust is is in no way a pre-initial public offer (IPO).
Amitabh Chaudhry, managing director and chief executive officer, HDFC Life, says the company is still far away from being listed on any bourse.
In an interview to CNBC-TV18, Chaudhry says the company's stake sale is is in no way a pre-initial public offer (IPO).
"HDFC Standard Life would like to take the equity in the company to 30-40 percent," adds Chaudhry who is happy with the company's current growth.
HDFC on Monday said Azim Premji Trust would buy 0.95 percent stake in its life insurance venture, HDFC Life, for Rs 198.9 crore thereby valuing the company at Rs 19,890 crore.
Below is the verbatim transcript of Amitabh Chaudhry's interview with Ekta Batra & Anuj Singhal on CNBC-TV18.
Anuj: It is the first of the non strategic insurance stake sales in India and we have been talking about the insurance bill and how things are going to shape out. Could we see some more stake sales in future and by the time it list, what could be the potential shareholding pattern of HDFC Life?
A: I will be not the right person to comment on whether there will be any future sales or not. Obviously there is an agreement between the two key shareholders of HDFC Life, which is HDFC Limited and Standard Life wherein Standard Life has a right to acquire certain shares if the new insurance bill is passed. There is an understanding between the two shareholders and under that understanding this sale has happened where Premji Trust has been allowed to buy up to 0.95 percent. I cannot comment on whether more sales will happen in future or not.
Ekta: Would this be a pre-initial public offering (IPO) sale that you made to Azim Premji Trust?
A: The shareholders of HDFC Life have always been very vocal about the fact that they do want to take HDFC Life public at some stake. One of the important milestones for that would have been the passing of insurance bill, which has not happened but there are number of hurdles which we need to cross. The shareholders decided that maybe it was important to establish some kind of a benchmark and this sale has happened.
Is this is pre-IPO sale. I wouldn't say that. I am sure before the IPO we would like some more anchor investors to come in; there are lot of people who are expressing interest in investing in HDFC Life and it is too early to say that this is a pre-IPO sale because the whole IPO process even if insurance bill is passed, will take anywhere between 9-12 months. We are far away from an IPO even today.
Ekta: I wanted some more understanding in terms of the valuations because one of the things that stood out is that the valuations post the Azim Premji Trust picking up that close to 1 percent stake, the valuations are at least 20 percents above what the analyst community was working with. Can you give us sense in terms of how exactly you arrived at these valuations and in your sense do you think there is more or how much upside potential to it?
A: Our involvement in this particular transaction was limited. This is a sale which happened between HDFC Limited and Azim Premji Trust. You are right that some of the analysts, if you look at the analyst reports, they were valuing HDFC Life at lower level but understand that most of those valuation reports or analyst reports were actually look at HDFC and they were ascribing some value to HDFC Life or their shareholding in HDFC Life. There are few analysts who are covering insurance industry directly and expanding the time to understand what the insurance industry valuations are and what they should be and what the dynamics of the business is. So most of the analyst reports are step down valuation and so they have not spent enough time. This particular transaction does indicate to the analyst community and the public at large as to what potentially the values being created in HDFC Life, we are quite delighted by that. I do expect the analyst community to pick this up and as the IPO fever catches on in the insurance industry, I am sure more analysts will spend time with us and the other insurance companies to understand the business and hopefully some of those numbers will start moving up in the right direction.
HDFC stock price
On December 24, 2014, at 14:10 hrs Housing Development Finance Corporation was quoting at Rs 1106.60, down Rs 17.75, or 1.58 percent. The 52-week high of the share was Rs 1177.00 and the 52-week low was Rs 755.60.
The company's trailing 12-month (TTM) EPS was at Rs 36.28 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 30.5. The latest book value of the company is Rs 177.87 per share. At current value, the price-to-book value of the company is 6.22.
Anda sedang membaca artikel tentang
HDFC Life IPO still some time away: CEO
Dengan url
https://kesehatanda.blogspot.com/2014/12/hdfc-life-ipo-still-some-time-away-ceo.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
HDFC Life IPO still some time away: CEO
namun jangan lupa untuk meletakkan link
HDFC Life IPO still some time away: CEO
sebagai sumbernya
0 komentar:
Posting Komentar