SBI Life Insurance debuts on bourses at 5% premium

SBI Life Insurance on Tuesday listed on bourses at a premium of Rs 33.30 as against its issue price of Rs 700 per share. At 0946 hours the shares of the company were trading at Rs 733.30 per piece, up 4.76%.

SBI Life, which is a subsidiary of State Bank of India, had raised up to Rs 8,400 crore via IPO (initial public offer). Its three-day IPO was oversubscribed by 3.58 times. 

It is a joint venture business with SBI and BNPPC as major stakeholders and KKR and Temasek as other shareholders. 

During the IPO, the company had offered 12 crore shares of face value Rs 10 each through offer for sale diluting 12% stake in company. 

Promoter SBI will reduce its holding by 8% to 62.1% and BNPPC will reduce 4% stake to 22%. Eligible employees of SBI will get a discount of Rs 68 per share on the offer price. 

Before its IPO, considering its "trust" factor, the analysts had given "subscribe" rating to this one. 

Centrum Broking in its IPO note had said, "Going ahead, the company is expected to benefit further from the vast bancassurance and private agent network along with its extensive reach and market share. We believe the company will be able to attract adequate investor interest on the basis of its leadership position and expected healthy growth compared to peers."

After ICICI Prudential Life Insurance, this is the second company to list on market.