Rs 8,695-crore initial public offering (IPO), which was sold in Rs 275-290 price band from November 7 to November 9, was subscribed 4.89 times
Shares of HDFC Standard Life Insurance Company on Friday made the best market debut among the recent listings of insurance companies , as the scrip got listed at Rs 311 on BSE, a premium of 7.24 per cent over its issue price of Rs 290.
The stock opened at Rs 310 on the National Stock Exchange (NSE).
At 10:02 AM; the stock was trading at Rs 313 on the BSE and NSE, after hitting an intra-day high of Rs 314 post its listing. A combined 49.58 million shares changed hands on the counter on both the exchanges.
The Rs 8,695-crore initial public offering (IPO), which was sold in Rs 275-290 price band from November 7 to November 9, was subscribed 4.89 times. The issue got strong response from the qualified institutional buyers (QIBs), which saw 16.6 times more demand than shares on offer.
Barring the QIB portion, most other categories saw a lukewarm response. The retail portion was subscribed 94%. The high net worth individual (HNI) portion was subscribed 2.3 times, the stock exchange data shows. The issue is totally offer-for-sale (OFS), so the company will not receive any proceeds from the IPO.
HDFC Standard Life is the third-largest private sector life insurance company in India with 16.5 per cent share of total private sector premiums in FY2017.
The return on embedded value (RoEV) for HDFC Life stood at 21.7 per cent in FY17, which was higher than 16.5 per cent for ICICI Prudential (IPRU).
Besides, value of new business (VNB)/ opening EV for HDFC Life was 9 per cent in FY17 against 8 per cent for SBI Life and 5 per cent for ICICI Prudential. VNB/opening EV measures the value contributed by a single year’s new business and is typically the key driver of value creation each year for a growing life company.