SBI Life Insurance IPO

SBI Life Insurance IPO

Business description from prospectus - SBI Life Insurance is India’s largest private life insurer, in terms of New Business Premium generated in each fiscal year, since Fiscal 2010. We have also increased our market share of New Business Premium generated among private life insurers in India, from 15.87% in Fiscal 2015 to 20.04% in Fiscal 2017. Between Fiscal 2015 and Fiscal 2017, our New Business Premium generated increased at a CAGR of 35.45%, which is the highest among the top five private life insurers (in terms of total premium in Fiscal 2017) in India.

In Fiscal 2017, we enjoyed a market share of Individual Rated Premium of 20.69% among private life insurers in India and 11.16% of the entire life insurance industry in India. Between Fiscal 2015 and Fiscal 2017, our Individual Rated Premium increased at a CAGR of 37.90 %, the highest among the top five private life insurers (in terms of total premium in Fiscal 2017) in India. We have also issued the highest number of individual life policies annually among the top five private life insurers (in terms of total premium in Fiscal 2017) in India since Fiscal 2014.

Promoters of SBI Life Insurance - State Bank of India and BNP Paribas Cardif SA

SBI Life Insurance IPO details
Subscription Dates20 - 22 September 2017
Price BandINR685 - 700 per share
Fresh issueNil
Offer For Sale120,000,000 shares (INR8,220 - 8,400 crore)
Total IPO size120,000,000 shares (INR8,220 - 8,400 crore)
Minimum bid (lot size)21 shares
Face Value INR10 per share
Retail Allocation35%
Listing OnNSE, BSE
SBI Life Insurance's financial performance (in INR crore)
FY2013FY2014FY2015FY2016FY2017Q1 FY2018
Premium earned10,345.310,701.912,780.015,665.420,852.53,762.6
Profit after tax630.1727.8814.9844.1954.7313.4
EPS (INR)6.37.38.28.49.63.1

SBI Life Insurance Contact Details

SBI Life Insurance Company Limited 
NATRAJ, MV Road and Western Express Highway Junction
Andheri (East)
Mumbai 400 069

Phone: +91 22 6191 1000
Fax: 
+91 22 6191 0338
Email:
[email protected]
Website: www.sbilife.co.in

Registrar of SBI Life Insurance IPO

Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32,
Gachibowli, Nanakramguda,
Hyderabad – 500 032, Telangana

Phone: +91 40 6716 2222 
Fax:
 +91 40 2343 1551 
Email:
 [email protected]
Website: www.karvycomputershare.com

Valuation of SBI Life Insurance (Based on latest FY)

Earnings Per Share (EPS): INR9.55

Price/Earnings (P/E) ratio: 71.7 - 73.3

Return on Net Worth (RONW): 18.56%

Net Asset Value (NAV): INR55.52 per share

SBI Life Insurance IPO Subscription Details

CategoryShares offeredSubscription (number of times, at 5 PM)
Day 1Day 2Day 3
QIB21,200,0000.061.5812.56
NII15,900,0000.010.080.69
Retail3,7100,0000.150.370.79
Employees  2,000,0000.170.441.01
Shareholders12,000,0000.050.110.37
Total88,200,0000.090.573.55

SBI Life Insurance IPO Allotment Status

SBI Life Insurance IPO allotment status will be available on Karvy Computershare’s website. Click on this link to get allotment status. You can also check allotment status using application number on this link.

LISTING PERFORMANCE OF SBI Life Insurance

IPO Opening Date: 20 September 2017

IPO Closing Date: 22 September 2017

Finalisation of Basis of Allotment: 27 September 2017

Initiation of refunds: 28 September 2017

Transfer of shares to demat accounts: 29 September 2017

Listing Date: 3 October 2017

Listing Price on NSE: To be updated

Closing Price on NSE: To be updated

16 COMMENTS

  1. Only substantial QIB and HNI subscription will guarantee some listing gain. Otherwise a clear avoid for Retail Investors particularly those who wish to flip the shares on the listing day.

  2. No fresh issue: Initial investors are leaving and dumping the shares at very high premium. P/E ratio: very high. SBI work culture: difficult to expect performance. More than 10 players in market. Do not expect any price gain on listing. Most likely, price will fall to below half the IPO price and stagnate after IPO noise settles.
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