HDFC Standard Life Insurance IPO: Good, but an expensive franchisee

Market positioning, a more profitable business and the HDFC brand lend support

After fuelling the valuations game in the life insurance space about a year back, HDFC Standard Life Insurance Company (HDFC Life) is all geared to go public on Tuesday. 

At the upper end of the price band of Rs 275 –290 apiece, the firm’s equity valuation (market capitalisation) is pegged at Rs 55,248 –58,261 crore. Considering that the private sector market leader ICICI Prudential Life (I-Pru Life) commands an equity valuation of Rs 55,700 crore, HDFC Life’s seem to be on the higher side. But, there are a few strong aspects, particularly with respect to its product profile, new business