Standard Life Aberdeen gains from HDFC float pricing

Standard Life Aberdeen's stake in India's HDFC Asset Management Company has been valued at least at £970m ahead of a planned flotation on the Bombay Stock Exchange.

Standard Life Investments has a 37.98% stake in HDFC AMC, one of the largest mutual fund companies in India, which revealed on Tuesday that its Red Herring prospectus had been approved and the IPO would be priced in a band from 1,095 to 1,100 rupees per share.

The FTSE 100 group said this would imply that SLI's stake would be valued at between INR88.2-88.6bn (£970-975m).

HDFC's brokers will begin taking subscriptions from anchor investors next Tuesday, 24 July, and to the public the day after, before closing on the Friday of that week.

Earlier in the year, parent Standard Life approved the offer for sale by SLI of up to 16.86m of HDFC AMC's shares in the IPO.

The offers constitute SLI offering up to 8.01% and HDFC Limited offering up to 4.08% of HDFC AMC's equity shares representing, in aggregate, 12.09% of the paid-up equity share capital of HDFC AMC at the time.

Standard Life said should the full amount of shares offered by SLI be sold through the IPO, SLI's remaining shareholding would be 30.23%.

Last November, HDFC Life listed on the BSE, generating £359m for the UK asset manager.