IPO Details
Minimum Application for Retail21 Shares | ₹ 14,700/-Price Band & Lot Size₹ 685 - 700Net Issue Size₹8,220 Cr - ₹8,400 Cr.
Company background:
SBI Life Insurance was established as a joint venture between the state bank and BNPPC in 2001. It has a leadership position with 20% market share in New Business Premium in FY17. It has also increased our market share of New Business Premium generated among private life insurers in India from 15.9% in FY15 to 20% in FY17
Investment rationale
1. Among the Pvt insurers, SBI retained its No.1 position since last 8yrs in New Business Premium.
2. SBI Life has been reporting strong growth in New Business Premium, with 38.9% growth in FY17 and 3yr CAGR of 28.3% v/s industry growth of 26.2% and 13.5% respectively
3. SBI’s network of 24000+ branches gains strong AUM growth of 17.1% while ICICI prudential is 10.7% and HDFC life gains 16.9% over FY15-17
4. SBI Life has a well balanced portfolio consisting of ULIP: 50.5%, Non participating: 34.7% and Participating:15.4%
5. SBI Life is well capitalized with a solvency ratio 211% (mandatory -150%)
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