New Delhi: The initial public offering (IPO) of HDFC Standard Life Insurance Co. Ltd was subscribed 5% so far on the first day of the share sale on Tuesday, data from stock exchanges showed.
As of 12.15pm, the IPO received bids for 10,946,600 shares against the total issue size of 219,759,218 shares, according to NSE data. The public offering will close on 9 November.
HDFC Standard Life, the fifth insurance company heading for an IPO this year, has set a price band of Rs275-290 per share for the IPO. At the upper end of the price band, HDFC Standard Life will be valued at Rs58,277 crore.
The IPO, a pure offer for sale, will see the two promoters of the life insurer-Housing Development Finance Corp. (HDFC) and Standard Life-sell 299.82 million shares. The IPO will see a dilution of 14.92% stake. HDFC and Standard Life will fetch Rs5,546.1 crore and Rs3,148.8 crore, respectively.
In fiscal year 2017, HDFC Standard Life’s new business premium grew 34% to Rs8,696.3 crore, from the previous year. As on 30 September, the firm had assets under management of Rs99,530 crore.
The HDFC Standard Life IPO is the second largest this year after General Insurance Corp. of India Ltd’s Rs11,372 crore initial share sale.
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