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Headline : SBI Life's Rs 8000 IPO subscribed 3.57 times on the final day
News Date : Sep 22, 2017
Source : AIP News Burea
Retail quota subscribed 85 %, quota for qualified institutional investors & non-institutional investors subscribed 12.56 times and 70% respectively


The mega initial share sale by SBI Life Insurance got subscribed 3.57 times on the final day of the bidding process on Friday on high demand from institutional investors. 

The Rs 8,400 crore public offer, which is India’s biggest in seven years, received bids for 31,54,78,569 shares against 8,82,00,000 shares offered by the life insurer. 

At upper end of the price band, IPO attracted subscription of close to Rs 25,000 crore. 

The country's leading private life insurer's IPO, however, failed to enthuse retail and high-net-worth individuals (HNIs), with shares in these two categories remaining undersubscribed.

Retail quota was subscribed 85 per cent, while employee quota was subscribed 1.03 times. The quota for qualified institutional investors and non-institutional investors was subscribed 12.56 times and 70 per cent, respectively. 

The company had garnered Rs 2,226 crore from anchor investors. SBI Life is a joint venture between country’s largest lender State Bank of IndiaBSE -2.46 % (SBI) and BNP Paribas Cardif (BNPPC) -- the insurance holding company of France 

The company's IPO involves promoters offloading up to 12 crore shares of face value of Rs 10 each through the offer of sale route. SBI will dilute up to 8 crore shares while BNP Paribas Cardif SA will offload up to 4 crore shares. 

The insurer had fixed a price band of Rs 685-700 per share for the public offer. 

The price band for the IPO was Rs 685 to Rs 700 per share. At the top-end, SBI Life was valued at Rs 70,000 crore, 12 times its price-to-book and 73 times its 2016-17 earnings. The offering was priced at 4.2 times its embedded value (EV) for 2016-17. Its closed peer ICICI Prudential Life currently trades at around 3.8 times its FY17 EV.

The SBI Life IPO was an offer for sale by the State Bank of India (SBI) and BNP Paribas. SBI sold shares worth Rs 5,600 crore and BNP sold worth Rs 2,800 crore in the IPO. SBI Life's IPO was biggest since Coal India's rs 15,300-crore offering in October 2010.

JM Financial, Axis Capital, BNP Paribas, Citigroup, Deutsche Equities, ICICI Securities, Kotak Mahindra Capital and SBI Capital Markets were the investment banks handling the IPO.




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