1. HDFC Standard Life share price jumps nearly 50% over IPO price in just 3 days of listing

HDFC Standard Life share price jumps nearly 50% over IPO price in just 3 days of listing

Shares prices of HDFC Standard Life have zoomed nearly 50% from its IPO price in just three days of listing on the stock market. HDFC Standard Life Insurance Company had raised about Rs 8,700 crore from its public offer.

By: | Published: November 21, 2017 2:57 PM
Bombay Stock Exchange building. (Image: Reuters)

Shares prices of HDFC Standard Life have zoomed nearly 50% from its IPO price in just three days of listing on the stock market. HDFC Standard Life shares made a stellar exchange debut on Friday last week with the stock rising over 25% led by heavy trading volumes. The stock of HDFC Life had jumped 44.44% to the record high of Rs 418.9 from the issue price of Rs 290 after opening little higher at Rs 356.4 on NSE today. On the first day of trading, followed by massive listing gains and a very high demand for HDFC Standard Life shares, the scrip emerged as the volume topper on both BSE and NSE. The stock was trading up 29.05% at Rs 384.4 on NSE today.

Amid the heavy trading today also, more than 4.5 crore shares exchanged hands on both BSE and NSE with about 3.9 crore shares on NSE alone, as at 2:30 pm. On the day HDFC Standard Life got listed, about 19 crore shares were traded. HDFC Standard Life stock advanced as much as 27.24% to hit the listing day’s high of Rs 369 on Friday. HDFC Standard Life Insurance recently concluded its IPO (initial public offering), raising a huge amount of Rs 8,695.01 crore at the upper end of the price band of Rs 290.

The high profile public offer from HDFC group was subscribed 4.86 times in the three-day bidding process. The stock of HDFC Standard Life added 7.24% to begin at Rs 311 on BSE against the issue price of Rs 290 while it started at Rs 310 on NSE. The IPO of HDFC Standard Life Insurance as being India’s one of the biggest public offers was managed by a number of underwriters and book leading managers.

The global coordinators and book running lead managers of the IPO of HDFC Life Insurance Company were Morgan Stanley India Company, HDFC Bank, Credit Suisse Securities (India), CLSA India and Nomura Financial Advisory and Securities (India). The book running lead managers are Edelweiss Financial Services, Haitong Securities India, IDFC Bank, IIFL Holdings and UBS Securities India while Karvy Computershare was the registrar to the issue.

This year had emerged as a hit for IPO market as more than Rs 65,000 crore has been raised so far, out of which Rs 43,770 crore notably through five big IPOs of 2017. The list includes SBI Life Insurance, ICICI Lombard General Insurance, HDFC Standard Life Insurance, New India Assurance, General Insurance Corporation. Through the public offer of HDFC Standard Life Insurance, HDFC and Standard Life offloaded 9.52% and 5.4% stakes in HDFC Standard Life respectively. HDFC Life IPO was the first offering by HDFC group after 22 years.

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