Life Insurance IPOs: Investors have mixed sentiments regarding the issue of life insurance companies and some have been listed at discount.
Life Insurance IPOs: The country’s largest life insurance company LIC disappointed the investors and it started on the very first day at a discount. Its condition cannot be said to be good even on the second day and still it is at a discount against the issue price. However, even before this, investor sentiment regarding the issue of life insurance companies has been mixed and some have been listed at a discount.
As ICICI Pru was listed at a discount, SBI Life and HDFC Life gave listing gains to investors. Below, information is being given about them in details, what was the trend of the subscribers regarding these IPOs, what was the atmosphere on the day of listing and what is the status of their shares now.
LIC IPO
First of all let’s talk about LIC. LIC’s IPO of 21 thousand crores proved to be the biggest IPO in the country. The issue garnered 295 per cent subscription and the highest share of policyholders was subscribed at 612 per cent.
Its issue price was Rs 949 per share but it got listed at a discount of about 8.64 percent i.e. Rs 867. On May 17, the day of listing, it had reached a high of Rs 920 and had fallen to a low of Rs 860.10 in intra-day and closed at Rs 875.45. Today (May 18) its shares are at a price of Rs 881.50 on BSE. Policyholders have got this share at a discount of Rs 60 and retail and employees through issue at a discount of Rs 45.
ICICI Prudential Life IPO
The shares of ICICI Prudential Life were listed about six years back on September 29, 2016. The issue of Rs 6057 crore was subscribed 10.48 times and the portion reserved for non-institutional investors (NIIs) got the highest bid at 28.55 times.
Its shares opened in the market on the day of listing at Rs 329 against the issue price of Rs 334 and on that day it hit a high of Rs 333.90 and a low of Rs 295.50 and closed at Rs 297.65. Right now its price is Rs 510.55 per share.
SBI Life IPO
The shares of SBI Life, the country’s largest life insurance company in the private sector, were listed in the domestic market on 3 October 2017. Its IPO of Rs 8,400 crore was subscribed 3.55 times and the share reserved for Qualified Institutional Buyers (QIBs) was subscribed the highest 12.56 times. Only 81 per cent of the share reserved for retail investors could be subscribed.
On the day of listing, its shares were listed at Rs 733.30 against the issue price of Rs 700. On that day it had slipped to a low of Rs 702.25 and hit a high of Rs 738.00. On the day of listing, the shares of SBI Life closed at Rs 708 and today its shares are getting at Rs 1077.
HDFC Life IPO
HDFC Life’s IPO of Rs 8695 crore came in about five years 2017 and its shares were listed on November 17 of the same year. The IPO was subscribed 4.89 times but the portion reserved for retail investors was subscribed only 91 per cent. The maximum share reserved for QIBs was subscribed at 1660 per cent.
Talking about the listing, the journey of its shares started at Rs 311 against the issue price of Rs 290 and on the day of listing it closed at Rs 344.25 with a low of Rs 307.65 and a high of Rs 369. Today its shares are at a price of Rs 554.30.
