HDFC Life breathes easy
HDFC Life is seeing a lot of action today; opening 7.5% higher at Rs.551, it rose further up to Rs.554.60 and this on the back a strong almost 4.5x surge in volumes. Its 52-week high is at Rs.620.70.
The stock price rose after RBI, on 20th April issued a letter, allowing HDFC Bank or HDFC Limited to increase the shareholding in HDFC Life and HDFC ERGO to more than 50%, prior to the effective date of the merger of HDFC Ltd into HDFC Bank.
HDFC currently holds 48.65% stake in HDFC Life and 49.9% in HDFC Ergo.
The higher than 50% holding in HDFC Life and HDFC Ergo by the merged entity augurs well and this is expected to keep the stock price in the green as and when the stake hike happens. The news on the street is that the management might hike the stake upto 60% in the immediate future.