SBI Life Insurance Company made a tepid debut on the bourses on Wednesday with the shares closing the session just 1 per cent higher at Rs 707.55 on the NSE against the issue price of Rs 700.
The stock listed at a 5 per cent premium over the issue price of Rs 700 and saw an intra-day high of Rs 738 and a low of Rs 702.25 on the BSE. The shares closed at Rs 708, up 1.14 per cent over the issue price. On the NSE, the stock listed at Rs 735 and touched an intra-day high of Rs 740 and a low of Rs 701.70.
The initial public offering of SBI Life Insurance was subscribed 3.58 times on the concluding day of the issue with investors bidding for 31.54 crore shares of the 8.82 crore shares on offer. The issue received bids for 26.63 crore shares from qualified institutional buyers of their quota of 2.12 crore shares.
SBI Life Insurance Company’s Rs 8,400 crore initial public offer was opened for subscription during September 20-22, with a price band of Rs 685-700 per share. Established as a joint venture between the State Bank of India and BNP Paribas Cardif in 2001, SBI Life Insurance company is India’s largest private life insurer in terms of new business premium generated in each fiscal year since 2010. Currently, SBI holds 70.1 per cent in SBI Life, while BNP Paribas Cardif has 26 per cent and remaining 3.9 per cent is owned by KKR and Temasek Holdings. So now, 12 per cent is being offloaded and after IPO, SBI and BNP Paribas Cardif will hold 62.1 per cent and 22 per cent, respectively. FE