Chennai: The Rs 8,400 crore Initial Public Offering by private insurer SBI Life Insurance Co Ltd that opened on Wednesday is attracting good investor interest, a company spokesperson said.
In a statement, SBI Life Insurance said it has finalised the allocation of 3.18 crore equity shares at Rs 700 per share totalling Rs 2,226 crore to 69 anchor investors.
Post anchor investors investment, the balance available for subscription by other categories is Rs 6,174 crore.
The issue price band is Rs 685-700 per share of Rs 10 each. The issue comprises of offer for sale up to eight crore shares by joint venture parteners State Bank of India (SBI) and four crore by BNP Paribas Cardif S.A.
The retail investors interest is expected to pick up further in the next two days. Normally investors in Gujarat would apply on the closing day and due to rains in Mumbai, the retail investor investment had slightly dampened, said an official associated with the issue.
The issue closes on September 22.
"We believe the Indian Life Insurance industry is in a phase of high growth and lower penetration will ensure the growth remaining higher for next couple of years. SBI Life with its strong brand name and wide distribution network is one of the best plays for Indian Life Insurance industry," said Angel Broking in a note.
According to Angel Broking, at the upper price of Rs 700 per share, the issue is offered at 4.2 times of embedded value of Rs 16,538 crore higher than 3.8 times for ICICI Prudential Life Insurance.