Mumbai: Shares of SBI Life Insurance Co. Ltd debuted almost 5% higher on the bourses on Tuesday, after the insurer’s Rs8,400 crore initial public offer (IPO) was subscribed 3.58 times last week.

At close, SBI Life shares ended 1.14% higher at Rs708 apiece on the BSE.

They had opened 4.75% higher on the BSE at Rs733.30 apiece, compared to the issue price of Rs700, which was the upper end of the price band of Rs685-700 per share in the IPO.

Earlier in the day, the shares touched a high of Rs738 and a low of Rs702.25.

Analysts had said that the issue was fairly priced and had recommended the IPO to investors for parking funds from a long-term perspective.

SBI Life Insurance’s IPO was the biggest to hit the market since Coal India Ltd’s issue in October 2010. It is also the fourth-largest IPO by issue size. Founded in 2001, SBI Life Insurance is a joint venture between India’s largest lender, SBI and BNP Paribas Cardif SA.

The SBI Life IPO saw State Bank of India (SBI) and BNP Paribas Cardif sell 8% and 4% of their stakes, respectively. As of 30 June, SBI Life had a portfolio of 37 individual and group products, including a range of protection and savings products to address the insurance needs of diverse customer segments.

SBI Life Insurance is the second Indian life insurer to go public. Last year, ICICI Prudential Life Insurance Co. Ltd raised Rs6,000 crore in its initial share sale.

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