HDFC Standard Life IPO fully subscribed on second day
Mumbai: The initial public offering (IPO) of HDFC Standard Life Insurance Co. Ltd was subscribed 1.17 times on Wednesday, the second day of the offering, driven by demand from institutional investors, stock exchange data showed.
As of 5pm, the portion of shares reserved for institutional investors in the HDFC Standard Life IPO was subscribed 3.69 times, while those for high net-worth individuals and retail investors were subscribed 50% and 36%, respectively.
On Tuesday, the HDFC Standard IPO had witnessed a subscription of 46%. The IPO closes on 9 November. The company has set a price band of Rs275-290 per share. The IPO, a pure offer-for-sale, will see the two promoters of the life insurer—Housing Development Finance Corp. (HDFC) and Standard Life—sell 299.82 million shares, fetching Rs8,695 crore. At the upper end of the price band, HDFC Standard Life Insurance will be valued at Rs58,277 crore.
In fiscal 2017, HDFC Standard Life’s new business premium grew 34% to Rs8,696.3 crore, from the previous year. As of 30 September, the firm had assets under management of Rs99,530 crore.
The HDFC Standard Life IPO will see a dilution of 14.92% stake. On Monday, as part of its anchor book allocation, HDFC Standard Life sold shares worth Rs2,322 crore to institutional investors, including sovereign wealth funds of Singapore government, Abu Dhabi Investment Authority and Norwegian sovereign wealth fund Norges. Other institutions that participated in the anchor book allocation included foreign investors such as T Rowe Price, Capital Group, Fidelity and Blackrock.
The HDFC Standard Life IPO is the fifth insurance IPO this year, after those of ICICI Lombard General Insurance Co. Ltd, SBI Life Insurance Co. Ltd, General Insurance Corp. of India Ltd (GIC Re) and The New India Assurance Co. Ltd. Last year, ICICI Prudential Life Insurance Co. Ltd became the first insurance company in the country to launch an initial public offering.
The HDFC Standard Life IPO is the third largest this year after GIC Re’s Rs11,372 crore and NIA’s Rs9,600 crore share sales.
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