Standard Life, the joint venture partner in HDFC Life Insurance, will sell close to 5 per cent stake in the company to meet public shareholding norm.

The share sale will fetch around Rs 3,570 crore to Standard Life. The floor price for the offer is set at Rs 357.5 and the share sale will be conducted over the next two days.

Standard Life will sell up to 7 crore shares, or 3.47 per cent, of the total equity of HDFC Life Insurance Company on March 12 through the offer for sale (OFS) route with an option of selling additional 1.46 per cent, or 2.95 crore shares, in the event of oversubscription. The floor price, at Rs 357.5, is at a discount of 8.2 per cent to Monday's closing price of Rs 389.8.

Promoters of HDFC Life needs to reduce 5.71 per cent stake to comply with Sebi's minimum public holding norms before November 2020. Currently, the promoter of HDFC Life - Standard Life and HDFC - together own 80.71 per cent stake. Standard Life's shareholding in HDFC Life will come down to 24.27 per cent. Standard Life holds 29.2 per cent, while HDFC owns 51.5 per cent.