Edinburgh-based investment giant Standard Life Aberdeen plc said on Tuesday it has sold almost 5% of HDFC Life Insurance Company Limited in India to raise £652 million.

The money will be used for general corporate purposes. The Edinburgh firm has been selling down its stake in HDFC over the past two years.

Based on current prices, Standard Life Aberdeen’s remaining shareholding in HDFC Life Insurance is worth £530 million.

“The company announces that on Tuesday 29 June 2021, SLMH06, a wholly owned subsidiary of the company, sold 100,845,104 shares in HDFC Life on the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited,” said Standard Life Aberdeen in a London Stock Exchange statement.

“The shares were sold at an average price of Rs 672.68 which will result in SLMH06 receiving approximately Rs 67.3bn (£652m), net of taxes and expenses, from the sale.  

“The company intends to use the proceeds for general corporate purposes.

“The shares sold constituted 4.99% of the paid-up, issued equity share capital of HDFC Life and SLMH06’s remaining shareholding in HDFC Life is now 3.89%, based on the paid-up, issued equity share capital.  

“Based on the current share price of Rs 694.2, the value of this remaining shareholding would be approximately Rs 54.6bn (£530m).”