SBI Life Insurance IPO fully subscribed on last day of offer

On the last of offer, SBI Life Insurance initial public offer (IPO) was fully subscribed till 1100 hours. 

As per NSE data, the public issue has been 1.20 times oversubscribed. The 8400 crore IPO received bids for 10.62 crore shares as against 8.82 crore shares offered. 

SBI Life Insurance, a subsidiary of State Bank of India (SBI) has set price band in the range of Rs 685-700 per piece. Before the IPO, the company had raised Rs 2,226 crore from anchor investors.

BlackRock, Canada Pension Fund, Government of Singapore, Abu Dhabi Investment Authority, HSBC, HDFC MF, ICICI Prudential MF, Kotak MF, Reliance MF, Axis MF and UTI MF are among the 69 anchor investors.

SBI Life, sixteen year old company is the most trusted name in the Indian life insurance industry. With this "trust" factor, the analysts have given "subscribe" rating to this one.

Vrinda Aditya, Analysts at Asit C. Mehta in her IPO note said, "SBI Life is the largest life insurance provider in India with 21% life insurance market and 11% as a whole of the insurance industry. At the upper price band, asking price is at a P/EV (price/embedded value) of 4.1X at FY17 EV of Rs. 1,65,379mn, which is fairly priced. We recommend to SUBSCRIBE the issue from a long-term prospective."