SBI Life Insurance Company Limited is India based private life Insurance Company. SBI Life Insurance is a joint venture between the State Bank and BNPPC. State Bank is India’s largest commercial bank. BNPPC, an insurance subsidiary of BNP Paribas, with operations across 36 jurisdictions internationally, is among the leading credit life insurance businesses globally. BNP Paribas is in the top 10 global financial institutions in terms of revenue. They are coming with their first-ever public issue to be launched in a few days. In this post, we will go through the SBI Life Insurance IPO Review and discuss the pros and cons of investing in this issue.
About SBI Life Insurance IPO :
- IPO opens – September 20, 2017.
- IPO closes – September 22, 2017.
- Face value – Rs 10 Per Equity Share.
- Offer price – Rs 685 to Rs 700 Per Equity Share.
- Issue type – Book Built Issue IPO.
- Issue size – 120,000,000 Equity Shares of Rs 10 aggregating up to Rs [.] Cr & Offer for Sale of 120,000,000 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
- Listing Exchange – BSE, NSE
- Draft Prospectus – Download
Objectives of the issue :
The main objective of this Offer is to achieve the big benefits of getting listed the equity shares on the stock markets and to undergo the sales process of companies 120,000,000 equity shares to the retail and non-retail investors by the selling shareholders.
About The Company-
It’s a nostalgic event for me while I write the SBI Life Insurance IPO review, as this is the company who was the stepping stone for me in the finance industry. I still can remember those days of 2003 when I joined the Kolkata branch. The company was small that time with me directly reporting to the All India Head of Sales.
SBI Life has some unique and great products right from the earlier days. Sudarshan was an award-winning endowment plan. They had other plans like Scholar, the child plan, Money Back Plan, etc. SBI Life started conquering the market with the launch of Horizon, their first-ever ULIP and the sales spiked even more with the launch of Unit Plus another ULIP. SBI Life became 2nd largest private insurance company right after ICICI Prudential Life Insurance within 2007.
They are still maintaining their wide range of product portfolio with plans like Shubh Nivesh, Smart Bachat, Flexi Smart Plus, Smart Saral Sanchay, Smart Women Advantage, Smart Guaranteed Savings Plan, Smart Humsafar, credit repair service etc in savings plans. There are protection plans like Sampoorn Cancer Suraksha, Smart Shield, Saral Shield, Saral Swadhan+, Smart Swadhan Plus, Grameen Bima, eShield, income Shield. The wealth creation plans include Smart Wealth Builder, Smart Wealth Assure, Smart Power Insurance, Smart Elite, Smart Privilege, Saral Maha Anand, wealth Insurance, etc. The retirement plans include Saral Pension, Retire Smart, Annuity Plus and the current child plans include Smart Champ Insurance and Smart Scholar.
- Competitive Strengths:
1. Largest private life insurer in India since 2010.
2. Backed by State Bank of India (SBI) and BNPPC.
3. Vast multi-channel distribution with pan-India presence (Branches, Agents and Online)
4. Strong capital base. The company has not required additional capital infusion since 2008.
5. Diversified product portfolio.
- SBI Life has 37 individual and group products, including a range of protection and savings products to address the insurance needs of diverse customer segments.
- SBI Life Insurance has received approval from the Securities and Exchange Board of India for an IPO of up to Rs 8,400 crore ($1.3 billion), with launch targeted for the September 20-22 period.
- Company has developed a multi-channel distribution network comprising bank branches of SBI and its associate banks, individual agent network (93,849 agents) and other distribution channels including direct sales and sales through corporate agents, brokers, insurance marketing firms and other intermediaries.
- SBI Life Insurance has appointed JM Financial, Axis Capital, BNP Paribas, Citigroup, Deutsche Equities, ICICI Securities, Kotak Mahindra Capital Company and SBI Capital as bankers.
The promoter of the company :
The Promoters of the Company are State Bank of India and BNPPC.
SBI Life Insurance IPO Review:
You can see this post as an insider’s information as I worked in the company for a long time and quite aware of the working of the company. Though the markets are in a highly overbought region, still good investments can always be beneficial in the long term. We have already written about ICICI Lombard IPO and shown our positive view on that. This IPO too, we feel have the potential to give good returns to investors in the medium to long term.
Hence our SBI Life Insurance IPO review has a POSITIVE view for medium to long term investors. The current grey market premium (GMP) for SBI Life Insurance IPO is hovering around Rs 55 to Rs 60. For investors looking for instant listing gains, I suggest checking the institutional interest on the last day of this issue.
Disclaimer: This SBI Life Insurance IPO review is just my own personal views posted for educational purpose. I suggest readers to do their own research or consult their financial advisor before investing or applying in this initial public offering.