SBI Life's premium pricing justified

Better profitability, superior growth, wide distribution network & strong market-hold place the life insurer's IPO favourably

Many factors are playing to the advantage of SBI Life’s initial public offering (IPO), including the timing or its business model, where superior growth and profitability are among the highlights. The strength of these reflects in the IPO valuation of Rs 70,000 crore. 

At these levels, the pricing is 1.5 times the stake sale value in December 2016. That was when leading private equity entity KKR and Government of Singapore owned-Temasek Holdings acquired 3.9 per cent stake. SBI Life’s ability to maintain the top spot (based on new business premium or NBP) or the second spot (trailing ICICI Prudential Life