Shares of SBI Life Insurance Company settled at Rs 708 on BSE, a premium of 1.14% over the initial public offer price of Rs 700.
Meanwhile, the Sensex rose 213.66 points or 0.68% to 31,497.38.
The stock debuted at Rs 733.30, a premium of 4.76% over the initial public offer (IPO) price. The stock had hit a high of Rs 738 and low of Rs 702.25. On BSE, 49.63 lakh shares were traded on the counter.
The IPO of SBI Life Insurance Company (SBI Life) opened for subscription on 20 September 2017 and closed on 22 September 2017. The IPO received bids for 31.55 crore shares. The IPO was subscribed 3.58 times. The price band for the IPO was set at Rs 685 to Rs 700 per share.
Ahead of the opening of the IPO, SBI Life had raised Rs 2226 crore by selling 3.18 crore shares to a total of 69 anchor investors. The shares were allotted to the anchor investors at Rs 700 per share, the top end of the Rs 685 to Rs 700 per share price band for the IPO.
SBI Life's public issue involved its promoters offloading up to 12 crore shares of face value of Rs 10 each through the offer of sale route. State Bank of India (SBI) diluted up to 8 crore shares while BNP Paribas Cardif SA offloaded up to 4 crore shares. SBI held 70.1% in SBI Life and BNP Paribas Cardif (BNPPC) held 26%.
There was a discount of Rs 68 per share on offer price to eligible employees. The offer constituted up to 12% of the post-offer paid-up share capital and the net offer constituted 10.6% of the post-offer paid-up share capital.
SBI Life Insurance Company is India's largest private life insurer in terms of new business premium (NBP) and a subsidiary of India's largest bank - State Bank of India in terms of deposits, advances and number of branches, which is also among world's top 50 banks in terms of assets. The company was established as a joint venture between the State Bank of India and BNPPC in 2001.
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