The initial public offering (IPO) of HDFC Standard Life Insurance Company was subscribed 0.46 times on the first day of the three-day bidding on Tuesday with investors bidding for 10.03 crore shares against 21.97 crore shares on offer. Qualified institutional buyers bid for 7.47 crore shares against 5.33 crore shares on offer. High net worth individuals (HNI) bid for 89.22 lakh shares against 4 crore shares on offer. Retail investors bid for 1.31 crore shares against 9.34 crore shares on offer. Employees bid for 12.98 lakh shares against 29.49 lakh shares on offer. On Monday, the company raised Rs 2322 crore from anchor investors by allotting 8.07 crore equity shares. HDFC Standard Life is planning to raise around Rs 8,695 crore from its initial public offering (IPO). The company has set a price band of Rs 275-290 per share for its IPO. Bids can be made for a minimum of 50 equity shares and multiples of 50 thereof. The issue consists of an offer for sale (OFS) up to Rs 29.98 crore. This comprises an offer for sale up to Rs 19.12 crore by Housing Development Finance Corporation and Rs 10.86 crore by Standard Life, the promoters of the HDFC Standard Life Insurance Company. Of the 29.98 crore OFS, 26.68 crore shares are reserved for the public and the rest 3.29 crore shares will be allotted to the employees of HDFC Life Insurance Company, HDFC, and shareholders of HDFC.
According to its red herring prospectus, HDFC Standard Life’s new business premium was Rs 8, 696 crores in FY17 against Rs 6, 487 crore in the previous year. Between FY 2015 and FY17, their annualised premium equivalent grew by a CAGR of 14.5%. The company’s product portfolio covers five principal segments across the individual and group categories, participating, non-participating protection term, non-participating protection health, other non-participating and unit-linked insurance products. As at September 30, 2017, their product portfolio comprised 32 individual and ten group products, as well as eight optional rider benefits.
In 2017, 28 companies raised Rs 44,342 crore through IPO.Listing gains and returns by newly listed companies as also the positive sentiment in the broader market are among the reasons attributed to the trend. SBI Life, ICICI Lombard, GIC Re, BSE, HUDCO, CDSL, and Avenue Supermarts are some of the companies who completed their IPO in the past 10 months.