hdfc life ipo grey market premium

hdfc life ipoHDFC Standard Life Insurance Company Limited IPO (HDFC Life IPO)

HDFC Life IPO finally received the nod of SEBI. It is the most profitable private insurer in terms of value of new business margin (VNB). In addition to this company is also moving towards becoming top three private life insurer in terms of market share according to CRISIL in fiscal 2015 and 2017.

HDFC Life is a joint venture of HDFC and Standard Life Aberdeen plc. HDFC is one of the leading financial provider offers wide range of services in the area housing, banking, life and general insurance, asset management, venture capital and education loans. On the other hand Standard Life is an investment company which is based Edinburg which also provides financial services. This is one of the oldest company established in the year 1825.

The company is experiencing golden years between 2015 and 2017. In fiscal 2015 and 2017, annualised premium equivalent was increased by CAGR of 14.5%. Company’s solvency ratio is also quite which is somewhat to 197.5% on June 2017 which is quite above the minimum solvency ratio of 150% required under IRDAI regulations.

Company Business

HDFC Standard Life Insurance Company Limited is one of the leading private insurer in India. It’s a joint venture which offering policies through a multi channel network. It offers policies through own branches, Insurance agents, Partner Banks and through other financial institutions. HDFC Life has over 414 branches and 15,406 employees and 58,147 individual agents.

Company Promoters

The promoters of the company are listed below –

  • Housing Development Finance Corporation Limited
  • Standard Life
  • Standard Life Aberdeen plc

Objective of the Issue

The objects of the issue are as follows –

  • To get the benefits of equity shares on stock exchanges.
  • To carry out the offer for sale.

Valuation of HDFC Standard  Life

  • Earnings Per Share (EPS): Rs. 4.4
  • Price/Earnings (P/E) ratio: To be updated
  • Return on Net Worth (RONW): 25.6%
  • Net Asset Value (NAV): Rs. 19.1 per share

HDFC Life – Company Financials

This is the summary of HDFC Standard Life Company’s financial information of the last 5 years in consolidated form:

Summary of financial Information (Consolidated)
Particulars For the year/period ended (in Rs. Crores)
31-Mar-17 31-Mar-16 31-Mar-15 31-Mar-14 31-Mar-13
Premium Earned 30,554.4 18,066.5 27,090.6 17,290.7 14,016.3
EPS 625.5 538.8 465.7 483.1 425.7
Profit After Tax (PAT) 2.24 3.64 3.93 3.64 2.24

HDFC Standard Life Insurance Company Issue Details

  • HDFC Life IPO Open Date – 7 November 2017
  • IPO Close Date – 9 November 2017
  • Issue Size – 99,827,818 Equity Shares of Rs 10 aggregating up to Rs … Cr
    Offer for Sale of 299,827,818 Equity Shares of Rs 10 aggregating up to Rs … Cr
  • Face Value – Rs 10 per share
  • Issue Price – Rs 275 – 290 per equity share
  • Lot size – 50 shares
  • Minimum order quantity – 50 shares
  • Listing Stock exchanges – NSE and BSE