Page 40 - Life Insurance Today OCTOBER 2017

SBI Life Insurance IPO 23% hike in new premium in August 2017
oversubscribed 3.6 times A growth of 22.6% new premium was registered at Rs 17,513.44 crores for
August this fiscal in comparison to Rs 14,282.45
crores as new business premium during August
of 2016-17. LIC recorded a jump of 25 % in its
new premium collection at Rs 13,382.30 crores
during the month as against Rs 10,713.55 crores
in the same month of 2016.
SBI Life Insurance Company's initial
public issue has received very good There are 24 life insurance firms in India, of which
response from qualified institutional 23 are from the private sector. The private life in-
investors on the last day of the IPO. surance companies' collective new business premium in August rose 15.8 %
to Rs 4,131.15 crores, from Rs 3,568.90 crores a year earlier.
The SBI Life public issue has been
oversubscribed 3.58 times, as per
data available on exchanges. HDFC Life's draft prospectus
HDFC Life Insurance Co. Ltd. recently filed its draft red herring prospectus
The initial public offer has received (DRHP) with the Securities and Exchange Board of In-
bids for 31.53 crore shares against dia to sell a 14.97% stake via IPO. On 17 July, the HDFC
the total IPO size of 8.82 crore
Life board passed a resolution, clearing the IPO by way
shares, excluding anchor investors'
of offering a combined 20% holding, of which the
portion.
insurer's UK-based JV partner, Standard Life (Mauritius
The reserved category of qualified Holdings) 2006 Ltd. is to offload more than 10%.
institutional buyers (QIBs) has seen
oversubscription of 12.55 times
while the portion set aside for non
institutional investors has sub-
scribed 69 percent and retail inves-
tors 84 percent.
SBI Life Insurance Company, has al-
ready raised Rs 2,226 crore from 69
anchor investors.
The IPO comprises of dilution of up
to 12 crore shares through the offer
of sale. SBI will sell up to 8 crore
shares while BNP Paribas Cardif SA
will dilute up to 4 crore shares.
The insurer aims to raise Rs 8,400
crore at the higher end of the price
band that is fixed at Rs 685-700 per
share. The trading in equity shares
is expected to commence on Octo-
ber 3, 2017.

JM Financial Institutional Securities,
Axis Capital, BNP Paribas, Citigroup
Global Markets India, Deutsche Eq-
uities India, ICICI Securities, Kotak
Mahindra Capital Company, SBI
Capital Markets are the book run-
ning lead managers to the issue.

40 October 2017 Life Insurance Today

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