HDFC Standard Life Insurance Ltd. has hired Morgan Stanley and Credit Suisse as bankers for an initial public offering after its merger with Max Group peer hit a regulatory hurdle, Bloomberg reported on Monday citing people with knowledge of the matter.
The report comes before the insurer’s board reveals its decision on the revised structure for the merger. An HDFC Life IPO could delay the deal and prompt Analjit Singh-led Max Group to look for other suitors for a potential merger, a senior executive at the company had earlier told BloombergQuint.
HDFC Life had hired merchant bankers for its IPO in 2016 when the opportunity to merge with Max Life came through. The board decided to go ahead as it would have ensured eventual listing of the insurer since the deal involved a listed entity of the Max group. Objection from insurance regulator and adverse comments from the Solicitor General of India forced the two to call off the deal after engaging with regulators for over a year.
HDFC Life’s partner Standard Life Plc too has been in favour of the IPO. The British company last year increased its stake in the Indian insurer to 35 percent by buying an additional 9 percent for Rs 1,706 crore.