Mumbai: Shares of HDFC Standard Life Insurance Co. Ltd rose 18.71% on their debut on the bourses on Friday, posting the best listing day gains among all the insurance companies that listed this year.
HDFC Standard Life shares closed at Rs344.25 apiece on the BSE, up 18.71% from the issue price of Rs290, which was the upper end of the price band of Rs275-290 per share.
In comparison, the 30-share benchmark index Sensex closed 0.71% higher at 33,342.80 points.
The insurer’s shares opened 7.24% higher on the BSE at Rs311 apiece and touched a high of Rs369 and a low of Rs307.65 during the day.
The issue was subscribed 4.90 times when it closed on 9 November.
Analysts had given a thumbs up to the initial public offering (IPO) citing fair valuations and better return and margins prospects going ahead owing to the strong prospects of the life insurance industry in the world’s second-most populated country.
The IPO, a pure offer for sale, saw the two promoters of the life insurer—Housing Development Finance Corp. (HDFC) and Standard Life—sell 299.82 million shares, fetching Rs8,695 crore. The IPO valued the company at Rs58,277 crore.
In fiscal year 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 IPO saw a dilution of 14.92% stake.
Insurance companies ICICI Lombard General Insurance Co. Ltd, SBI Life Insurance Co. Ltd, state-owned General Insurance Corp. of India Ltd (GIC Re) and New India Assurance Co. Ltd (NIA) went public earlier this year.
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.