HDFC Life IPO opens today: Should you invest?
Valuations are high, but subscribe for the long term, advise analysts LATEST NEWS : HDFC Standard Life Insurance , one of the top three private life insurers in profitability, on Tuesday launched its Rs 8,695-crore initial public offering (IPO), the biggest so far in the country’s life insurance sector. The price band for the offer has been fixed at Rs 275-290 a share. The public issue comprises sale of 191,246,050 equity shares by HDFC, amounting to a 9.55% stake, and up to 108,581,768 shares, or 5.42% holding, by Standard Life Mauritius. While the company raised Rs 2,322 crore from anchor investors on Monday, should you put your money in the offer as a retail investor, especially given that that valuation is on the higher side? ‘Subscribe’, but with a long-term horizon, suggest most analysts. At present, HDFC holds 61.41% and Standard Life 34.86% in HDFC Standard Life, while the remaining shares are owned by employees and PremjiInvest. Here is what broking f...