HDFC Standard Life IPO subscribed 46% on Day 1 on institutional demand
Mumbai: The initial public offering (IPO) of HDFC Standard Life Insurance Co. Ltd was subscribed 46% on Tuesday, the first day of the public offering, led by demand from institutional investors, according to data from stock exchanges.
As of 5pm, the portion of shares reserved for institutional investors in the HDFC Standard Life IPO was subscribed 1.4 times, while those for high net-worth individuals and retail investors were subscribed 22% and 14%, respectively.
The HDFC Standard Life IPO closes on 9 November. The company has set a price band of Rs275-290 per share for the IPO. The IPO, a pure offer for sale, will see the two promoters of the life insurance firm—Housing Development Finance Corp. Ltd (HDFC) and Standard Life Mauritius—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% from the previous year to Rs8,696.3 crore. As on 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 allotted shares worth Rs2,322 crore to institutional investors including sovereign wealth funds of the 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 Insurance initial share sale is the fifth insurance IPO this year.
ICICI Lombard General Insurance Co. Ltd, SBI Life Insurance Co. Ltd, state-owned General Insurance Corp. of India Ltd (GIC Re) and The New India Assurance Co. Ltd are the insurance companies that have gone public this year.
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 The New India Assurance Co’s Rs9,600 crore share sales.
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