Mumbai: HDFC Standard Life Insurance Company on Monday announced a price band of Rs 275-290 per share for its initial public offering (IPO), which will open for subscription on November 7.

The IPO, likely to raise up to Rs 8,700 crore, will see the promoters diluting a 14.92 per cent. HDFC will offload a 9.52 per cent stake, while Standard Life will dilute 5.4 per cent.

At present, HDFC owns a 61.21 per cent stake in the joint venture, which will come down to 51.69 per cent, while Standard Life's 34.75 per cent stake will be 29.35 per cent after the issue. The IPO will close on November 9.

"The funds raised will be used by HDFC Ltd for its business purposes as the insurance arm has adequate capital needed for growth," HDFC chairman Deepak Parekh told newspersons here on Monday.

The offer is for about 30 crore equity shares, comprising an offer for sale of 19 crore equity shares by Housing Development Finance Corporation and up to 10 crore shares by Standard Life (Mauritius Holdings).

HDFC profit up 17%

Mortgage major HDFC has reported a 17 per cent increase in its consolidated net profit at Rs 2,869 crore for the September quarter on better spreads and the growth in higher advances.

On a standalone basis, the lender reported a 15 per cent increase in net profit at Rs 2,101 crore.

"Profit was driven by stable spreads and larger volumes. Individual loan disbursements grew 23 per cent, which on a base as large as ours is a very substantial increase. The total loan book growth was 18 per cent," vice-chairman and chief executive Keki Mistry told reporters.

The spread on the individual loan book was 1.90 per cent, while the same on the non-individual book was much higher at 3.1 per cent, he said. "We expect our spread will remain in a band of 2.20 per cent to 2.35 per cent for the remaining part of the year," he added.