SBI Life shares list at 5% gain on stock market debut to issue price of Rs 700

By: | Updated: October 3, 2017 12:49 PM

Shares of SBI Life Insurance made a strong debut on stock exchanges on Tuesday after the insurer recently completed its Rs 8,400 crore IPO in September.

SBI Life’s Rs 8,400 crore IPO was the largest public offer in last seven years. (Image: Reuters)

Shares of SBI Life Insurance made a strong debut on stock exchanges on Tuesday after the insurer recently completed its Rs 8,400 crore IPO in September. The stock of SBI Life Insurance advanced 5% on the listing from its issue price of Rs 700. The initial public offer (IPO) of Rs 8,400 crore was subscribed 3.58 times between 20 September and 22 September. Shares of SBI Life rose as much as 5% to the day’s high of Rs 735 on NSE. This is the second listing of a life insurer after ICICI Prudential Life Insurance, which went public last year. The company raised about Rs 8,400 crore at the upper hand of the price band. SBI Life’s Rs 8,400 crore IPO was the largest public offer in last seven years and the biggest after Coal India’s Rs 15,200 crore share sale.

Track live stock prices: SBI Life Insurance; ICICI Prudential Life Insurance; ICICI Lombard General Insurance

SBI Life Insurance Company raised Rs 2,226 crore from anchor investors. The list of anchor investors includes BlackRock, Canada Pension Fund, Government of Singapore, Abu Dhabi Investment Authority, HSBC, HDFC MF, ICICI Prudential MF, Kotak MF, Reliance MF, Axis MF and UTI MF are among the 69 anchor investors. The insurer had allotted 3.18 crore shares to 69 anchor investors at an average price of Rs 700, which has fetched Rs 2,226 crore to the company, SBI Life informed to the exchanges.

The promoters of SBI Life have offloaded up to 12 crore shares of face value of Rs 10 each through the offer of sale route. State Bank of India has diluted up to 8 crore shares while BNP Paribas Cardif SA sold up to 4 crore shares. SBI Life said the company wants to achieve the benefits of listing equity shares on the stock exchanges and to carry out the sale of up to 12 crore equity shares by the selling shareholders. The listing will enhance the “SBI Life” brand name and provide liquidity to the existing shareholders and our company will not receive any proceeds from the offer, it added.

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