SBI Life lists at 5% premium to issue price
The issue, which was sold on September 20-22, was subscribed 3.58 times.
By ETMarkets.com | Updated:
NEW DELHI: Shares of SBI Life Insurance Company, whose Rs 8,400 crore mega issue concluded recently, made a decent debut on Tuesday, as the scrip got listed at Rs 733.30 on BSE, a premium of 4.76 to its issue price of Rs 700.
The scrip eventually closed the day at Rs 708, up 1.14 per cent.
On NSE, the scrip got listed at Rs 735, up 5 per cent. But it settled the day at Rs 713.30, up 1.9 per cent.
At 10 30 am, the scrip was trading at Rs 726.05 on BSE, up 3.72 per cent.
The issue, which was sold on September 20-22, was subscribed 3.58 times. SBI Life is a joint venture between India's largest lender State Bank of India (SBI) and BNP Paribas Cardif (BNPPC), the insurance holding company of France.
At the issue price, the scrip was priced at 4.2 times its FY17 embedded value of Rs165 per share, which was higher than ICICI Prudential's 3.8 times FY17 EV. SBI Life has the lowest total cost ratio among the private life insurers, which is backed by an impressive control over opex, analysts noted..
SBI Life distributes its products through 24,000 SBI bank branches, in addition to 8,500 branches of other banks. The company reported highest new business premium (NBP growth) of 42.8 per cent in FY17, compared with 22.9 per cent average growth for private peers.
There is a good lineup ahead from the insurance industry, seen as a sunrise sector of the economy, with less than 4 per cent penetration level and a lot of ground to cover. General insurance industry leader, public sector player New India Assurance is readying an over $1 billion issue; HDFC Life will be next in line.
The scrip eventually closed the day at Rs 708, up 1.14 per cent.
On NSE, the scrip got listed at Rs 735, up 5 per cent. But it settled the day at Rs 713.30, up 1.9 per cent.
At 10 30 am, the scrip was trading at Rs 726.05 on BSE, up 3.72 per cent.
The issue, which was sold on September 20-22, was subscribed 3.58 times. SBI Life is a joint venture between India's largest lender State Bank of India (SBI) and BNP Paribas Cardif (BNPPC), the insurance holding company of France.
At the issue price, the scrip was priced at 4.2 times its FY17 embedded value of Rs165 per share, which was higher than ICICI Prudential's 3.8 times FY17 EV. SBI Life has the lowest total cost ratio among the private life insurers, which is backed by an impressive control over opex, analysts noted..
ADVERTISEMENT
SBI Life distributes its products through 24,000 SBI bank branches, in addition to 8,500 branches of other banks. The company reported highest new business premium (NBP growth) of 42.8 per cent in FY17, compared with 22.9 per cent average growth for private peers.
There is a good lineup ahead from the insurance industry, seen as a sunrise sector of the economy, with less than 4 per cent penetration level and a lot of ground to cover. General insurance industry leader, public sector player New India Assurance is readying an over $1 billion issue; HDFC Life will be next in line.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
