HDFC Standard Life IPO subscribed 2.46 times till mid-session on Day 3


The initial public offering (IPO) of HDFC Standard Life Insurance Co Ltd was subscribed 2.46 times till 1.45 pm on the last day of the share sale on Thursday. The issue received bids for 53,99,85,000 shares against the total size of 21,97,59,218 shares, as per NSE data.

The portion meant for qualified institutional buyers (QIBs) was subscribed 9.44 times, non-institutional investors 0.90 times and retail investors 0.66 percent.

The IPO was subscribed 1.17 times on the second day of bidding on Wednesday. The portion meant for qualified institutional buyers was subscribed 3.69 times, non institutional investors 50 per cent and retail investors 36 per cent. Till Tuesday, the IPO got subscribed 46 per cent.

Anchor investors

HDFC Standard Life Insurance Company had on Monday raised Rs. 2,322 crore from anchor investors.

Breaking several records, the anchor portion of the mega HDFC Standard Life public share offering saw 126 fund level names come on board as ‘anchor investors’, buying up 8.0686 crore shares for ₹2,322 crore.

Billed as the largest anchor book since the launch of anchor concept in 2009, the HDFC Standard Life anchor portion saw record demand of close to ₹50,000 crore and many firsts to its credit, sources close to the developments said.

Price band for the offer had been fixed at Rs. 275-290 per share. The public issue comprises sale of 1,91,246,050 equity shares, amounting to 9.55 per cent stake, by HDFC Ltd and up to 1,08,581,768 scrips, or 5.42 per cent, holding by Standard Life Mauritius.

At present, HDFC owns 61.41 per cent stake in HDFC Standard Life and Standard Life has about 34.86 per cent stake, while the remaining is with employees and PremjiInvest.

Morgan Stanley India Company, HDFC Bank, Credit Suisse Securities (India), CLSA India and Nomura Financial Advisory and Securities (India) were the global coordinators and book running lead managers to the offer.

Like its peers, HDFC Standard Life Insurance is expected to put up a muted show on listing, thanks to expensive valuation of its initial public offer, according to various brokerage reports.

At the upper end of the price band (₹290), the issue is valued at 4.2 times H1FY18 embedded value compared to 3.2 times and 3.6 times for its life insurance peers — ICICI Prudential Life Insurance and SBI Life Insurance, respectively.


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