SBI Life shares close 1.1% on listing day

MUMBAI: Shares of SBI Life Insurance Co Ltd debuted 5% higher on the bourses on Tuesday, after the insurer’s ₹8,400 crore initial public offer (IPO) was subscribed 3.58 times last week.

SBI Life shares closed 1.14% higher at ₹708 a piece on the BSE. They had opened 4.75% higher on the BSE at ₹733.30 apiece, compared to the issue price of ₹700, which was the upper end of the price band of ₹685-700 per share. Earlier in the day, the shares touched a high of ₹738 and a low of ₹702.25, respectively.

Analysts had said that the issue was fairly priced and had recommended investors to park their funds in the IPO from a long-term perspective.

SBI Life Insurance’s IPO was the biggest to hit the market since Coal India Ltd’s issue in October 2010. It is also the fourthlargest IPO by issue size.

Founded in 2001, SBI Life Insurance is a joint venture between India’s largest lender, SBI and BNP Paribas Cardif.

The IPO saw State Bank of India and its joint venture partner BNP Paribas Cardif SA sell 8% and 4% of their stakes in the life insurance firm, respectively.

As of June 30, it had a portfolio of 37 individual and group products, including protection and savings products, to address diverse customer segments.

SBI Life Insurance is the second Indian life insurer to go public. Last year, ICICI Prudential Life Insurance Co Ltd raised ₹6,000 crore in initial share sale.