Nov 07, 2017 - Nov 09, 2017
Rs.275 – Rs.290 per Equity Share
HDFC Standard Life Insurance Company Limited is first private life insurance company to register in India and were established as a joint venture between HDFC and Standard Life Aberdeen plc (one of the world’s largest investment companies), initially through its wholly owned subsidiary The Standard Life Assurance Company and now through its wholly owned subsidiary, Standard Life Mauritius.
|Issuer||HDFC Standard Life Insurance Company Limited (View Report)|
|Issue Type||100% Book Built Issue IPO|
|Issue Period||Issue Opens: Nov 07, 2017|
|Issue Closes: Nov 09, 2017|
|Price Brand||Rs.275 – Rs.290 per Equity Share|
|Issue Size(Rs.)||Up to 299,827,818 Equity Shares (Rs. 8245.26 Crs* -Rs. 8695.01 Crs^)|
|Face Value||Rs.10 per Equity Share|
|Minimum Order Quantity Retail:||50 Shares and in multiples thereof|
|QIB||50% of the issue size (13,34,47,758Equity Shares) (Rs.3669.81* Cr – Rs.3869.98^ Cr)|
|NIB||15% of the issue size(4,00,34,328Equity Shares) (Rs.1100.94* Cr – Rs.1161.00^ Cr)|
|Retail Individual Bidders||35% of the issue size (9,34,13,431Equity Shares)(Rs.2568.87* Cr-2708.99^ Cr)|
|Employee Reservation:||HDFC Employee Portion: 8,05,000 Equity Shares
(Rs. 22.14 Cr* – Rs. 23.35 Cr^)
HDFC Life Employee Portion: 21,44,520 Equity Shares(Rs. 58.97 Cr* - Rs. 62.19 Cr^)
HDFC Shareholders Portion: 2,99,82,781 Equity Shares (Rs. 824.53 Cr* - Rs. 869.50 Cr^)
|Registrar||Karvy Computershare Private Limited|
|Listing||NSE & BSE|
|Book Running Lead Managers||Morgan Stanly, HDFC Bank, Credit Suisse, CLSA, Nomura, Edelweiss, Haitong, IDFC Bank, IIFL Holdings,UBS.|
HDFC Standard Life Insurance (HSLI) is one of the most profitable life insurers in India with a broad and diversified product portfolio covering five principal segments across the individual and group categories. From FY15, the operating performance has strengthened with significant expansion in Value New Business (VNB). During FY15-17, company’s Annualized Premium Equivalent (APE) registered a CAGR of 14.5%.
Strong Financial performance: During FY15-17, the total premium registered a CAGR of 14.5% driven by CAGR of 12.6%, 43.6% and 7.3% in individual NBP, group NBP and renewal premiums respectively. In addition, HSLI improved its VNB margins from 18.5% in FY15 to 22.0% in FY17. Robust profitability and VNB margins have allowed the business to grow. The company has a healthy balance sheet with total net worth of Rs.44.6 bn and solvency ratio of 200.5% above the minimum requirement of 150%.
Valuation & Rating: At an IPO price band Rs 275-290, the IPO is priced at 61.9x P/E based on FY17 EPS. Factoring the parentage brand of ‘HDFC’, strong corporate governance, better than industry VNB margins along with high dividend payouts, we rate the IPO at 4 out of 5.