HDFC Standard Life extends gains post debut, spikes 27% against issue price

HDFC Life

The stock was listed at Rs 311, a 7% premium against issue price of Rs 290 per share on the BSE. It was opened at Rs 310 on the National Stock Exchange.



LATEST NEWS :  HDFC Standard Life Insurance Company (HDFCSL) made a positive debut by listing at Rs 311, a 7% premium against issue price of Rs 290 per share on the BSE. The stock opened at Rs 310 on the National Stock Exchange (NSE).

At 11:36 AM; the stock was trading at Rs 340 on the BSE and NSE, after hitting an intra-day high of Rs 369, up 27% against its issue price.


HDFCSL's Rs 8,695 crore initial public offer (IPO) was oversubscribed 4.9 times to its issue size. The issue got strong response from the qualified institutional buyers (QIBs), which saw 16.6 times more demand than shares on offer.

Barring the QIB portion, most other categories saw a lukewarm response. The retail portion was subscribed 94%. The high net worth individual (HNI) portion was subscribed 2.3 times, the stock exchange data shows. The issue is totally offer-for-sale (OFS), so the company will not receive any proceeds from the IPO.

Among the private life insurers, HDFCSL is one of the most profitable life insurers in India. The company has consistently been among the Top 3 private life insurers in terms of market share based on total new business premium (NBP) during FY15-17, according to CRISIL. Over the preceding two fiscals, its annualized premium equivalent (APE) registered a healthy CAGR of 14.5%.

From FY15, the operating performance has strengthened with significant expansion in value of new business (VNB) margin, sustained elevated operating return on embedded value (RoEV) and a strong EV CAGR of 18.4% over FY15-17.  Key business drivers have been favourable trends in persistency ratios and product mix. The company has persistently delivered a high RoE.

Given impeccable brand equity, comprehensive suite of products, deeply penetrated bancassurance network, fast growing direct sales engine, strong financial position and an underinsured Indian market, HDFCSL is poised to grow fast and gain market share. Its profitability could expand further if the above mentioned business tailwinds continue. Thus, the franchise represents deep structural value, IIFL Wealth Management said in a note.

Comments

Post a Comment

Popular posts from this blog

Tigor launched at Rs 4.7 lakh: Tata eyes a seat in Swift Dzire's market

Image
It comes in four variants in the price range of Rs 4.7 lakh to Rs 6.19 lakh Upping the ante in the crowded compact sedan category,  Tata Motors  on Wednesday launched Tata Tigor , its third product in the tax-efficient sub-four metre sedan segment. The biggest selling point for Tigor is its aggressive pricing. At Rs 4.7 lakh for the base petrol variant, Tigor is now the cheapest compact sedan in the country and even undercuts Tata’s existing models. For example, the largest-selling car in the segment - Swift Dzire - starts at Rs 5.27 lakh, while the base petrol version of Indigo CS, from the Tata stable, is priced at Rs 5.03 lakh. Besides Indigo CS, Tata Motors also sells the Zest in the segment, but has not been able to break the dominance of Maruti Suzuki’s Swift Dzire in the category. The compact sedan and hatchback category, accounted for over 40% of car sales in January 2017, at over 114,000 units. Maruti accounted for 56,000 cars in the category, with Swift D...
Read more

Indigo, SpiceJet Shift Operations To T-2 of DIAL

Image
Indira Gandhi International airport sees a partial shift of operations from Terminal-1 (T-1) to Terminal-2 (T-2) by Indigo and SpiceJet The decision relating to shifting a part of the airline’s operation to IGI terminal 2 in Delhi International Airport Ltd (DIAL’s) decision was challenged by Indigo airlines, which has the biggest market share in Delhi high court. However, as a temporary measure, the Delhi high court on Tuesday cleared all the decks for (DIAL) to shift a part of operations of a few airlines to the newly unveiled Terminal 2 from terminal 1 at Indira Gandhi airport. Hema Kohli and Rekha Palli dismissed the appeal by the Indigo against the shifting of its partial operations by DIAL, which is a policy decision with the sanction of Directorate General of Civil Aviation (DGCA). Partial Shifting of Operations Indira Gandhi International airport sees a partial shift of operations from Terminal-1 (T-1) to Terminal-2 (T-2) by Indigo and SpiceJet. The shift of operat...
Read more

Oppo to set up Rs 2,200-cr smartphone manufacturing unit in Greater Noida

Image
Domestic smartphone maker is looking to begin export of phones made in India in the next 2-3 years LATEST NEWS : Telephone maker Oppo Mobiles is making plans to make investments round Rs 2,200 crore in India for a cellular telephone production facility. The proposed investment can be at more Noida. The company has submitted files associated with the proposed assignment to the environment Ministry and stated that the net quantity required for the status quo of the second one unit in Uttar Pradesh includes land in addition to development prices. The assignment is anticipated to be a self-sufficient manufacturing established order, spreading across an area of 110.04 acres. In its reaction to a fixed of questions posed by means of the business fashionable, Oppo said its other meeting unit in Noida, which commenced manufacturing in July 2016, has reached full capacity and plans were being firmed up for the putting in of a surface Mount generation (SMT) manufacturing fac...
Read more