HDFC Standard Life shares trade 23% higher on stock market debut


Mumbai: Shares of HDFC Standard Life Insurance Co. Ltd debuted 7.24% higher on the bourses on Tuesday, after the insurer’s Rs8,695 crore initial public offer (IPO) was subscribed nearly five times earlier this month.

HDFC Standard Life shares opened 7.24% higher on the BSE at Rs311 apiece compared to the issue price of Rs290, which was the upper end of the price band of Rs275-290 per share.

At 10.47am, they were up 23.3% at Rs357.60, while benchmark 30-share Sensex index traded 1.1% higher at 33,469.38 points. Earlier in the day, the shares touched a high of Rs314.70 and a low of Rs307.65, respectively.

The issue was subscribed 4.90 times when it closed on 9 November.

The IPO, a pure offer for sale, saw the two promoters of the life insurer—Housing Development Finance Corp. (HDFC) and Standard Life—sell 299.82 million shares, fetching Rs8,695 crore. The IPO valued the company at Rs58,277 crore.

In fiscal year 2017, HDFC Standard Life’s new business premium grew 34% from the previous year to Rs8,696.3 crore. As on 30 September, the firm had assets under management of Rs99,530 crore. The IPO saw a dilution of 14.92% stake.

Insurance companies ICICI Lombard General Insurance Co. Ltd, SBI Life Insurance Co. Ltd, state-owned General Insurance Corp. of India Ltd (GIC Re) and New India Assurance Co. Ltd (NIA) went public ahead of HDFC Standard Life, earlier this year.

The HDFC Standard Life IPO is the third largest this year after GIC Re’s Rs11,372 crore and NIA’s Rs9,600 crore share sales.