Leading mortgage financier HDFC Ltd on Tuesday purchased 1.5 crore shares of HDFC Life Insurance Company Ltd for ₹992.6 crore through a bulk deal on the NSE. The deal values the insurer at ₹1.43 lakh crore.
The shares were purchased at ₹667.1 apiece. As of March 2023, HDFC Ltd has majority ownership of 48.65% in HDFC Life Insurance.
In the past year, the company has given a return of 19.6% to investors against Nifty 50 return of 18.8%.
In Q4FY2023, HDFC Life recorded a standalone Profit After Tax (PAT) of ₹358.66 crore, showing a marginal increase from ₹357.52 crore in the previous quarter FY2022. Additionally, HDFC Life witnessed a year-on-year growth of 26% in net premium income growing to ₹19,426.57 crore during the March quarter of 2023.
HDFC Life Insurance shares ended 5.6% higher at RS 667.2 apiece on the NSE.
Last week, HDFC Life received a notice from tax authorities related to a demand for ₹942 crore towards Goods and Services Tax (GST) dues between July 2017 to FY22. The notice relates to the claiming of input tax credit against supply of services, which the tax authorities believe are ineligible for such claims. HDFC Life has been advised by its legal and tax counsel that its case is contestable.
