About the Company:
SBI Life Insurance is a joint venture life insurance company between State Bank of India (SBI), the largest state-owned banking and financial services company in India, and BNP Paribas Cardiff.
The joint venture between the State Bank and BNP Paribas was established in the year 2001.
Company is India’s leading private life insurer, in terms of New Business Premium generated in each fiscal year, since Fiscal 2010. They have also increased their market share in India, from 15.87% in Fiscal 2015 to 20.04% in Fiscal 2017.
In Fiscal 2017, company enjoyed a market share of Individual Rated Premium of 20.69% among private life insurers in India and 11.16% of the entire life insurance industry in India.They have also issued the highest number of individual life policies annually among the top five private life insurers.
As of June 30, 2017,company had 803 offices located across 29 States and seven Union Territories to serve the customers. In addition, as of June 30, 2017 they provided customer support services through over 41,000 of our CIFs at the branches of their various bancassurance partners..
As of June 30, 2017, they had a comprehensive product portfolio of 37 individual and group products, including a range of protection and savings products to address the insurance needs of diverse customer segments.Company’s individual products include participating products, non-participating protection products, other non-participating products and unit-linked products, which contributed 10.77%, 0.95%, 1.69% and 50.36%, respectively, of their New Business Premium in Fiscal 2017.
Company has a large and productive individual agent network comprising 93,849 agents as of June 30, 2017, as well as other distribution channels including direct sales and sales through corporate agents, brokers, insurance marketing firms and other intermediaries.
Company’s assets under management (“AUM”) increased from Rs.71,338 crores as of March 31, 2015 to Rs.97,7,36 crores as of March 31, 2017, and was the second highest among top five private life insurers (in terms of total premium in Fiscal 2017) in India as of March 31, 2017.
Management Team:
Mrs.Arundhati Bhattacharya (Designation: Chairman)
Mr.Arijit Basu (Designation: Managing Director and Chief Executive Officer)
Positives for the Company:
- Experienced management Team.
- Strong Brand name.
- Dividend paying Company.
- Largest private life insurer with a consistent track record of rapid growth.
- Strong multi-channel distribution Network.
- Robust financial position supported by high operating efficiencies.
- Diversified product portfolio.
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Negatives for the Company :
- Seeking Very High Valuations.
- In December, they had sold a 3.9% stake to investors KKR and Co. LP and Temasek Holdings(Singapore) for around Rs1,794 crore (Valuation Rs46,000 cr)($7.07 billion). Now in the IPO they are seeking valuation of Rs.70,000 crores ($10.76 billion)
TOP 10 Shareholders:
| Sr.No. | Shareholder Name | Number of Equity Shares held | Percentage of Equity Share Capital % |
|---|---|---|---|
| 1. | State Bank | 70,10,00,000 | 70.10 |
| 2. | BNPPC (BNP Paribas) | 260,000,000 | 26.00 |
| 3. | Value Line Pte. Ltd, an affiliate of KKR Asian Fund L.P. | 19,500,000 | 1.95 |
| 4. | MacRitchie Investments Pte. Ltd., an indirect wholly owned subsidiary of Temasek Holdings (Private) Limited | 19,500,000 | 1.95 |
| Total | 100,00,00,000 | 100% |
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | Q1 FY 18 |
|---|---|---|---|---|---|---|
| Revenue | 10345.3 | 10701.9 | 12780.0 | 15665.4 | 20852.45 | 3762.6 |
| Net Profit | 630.11 | 727.75 | 814.86 | 844.10 | 954.65 | 313.4 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 20th September 2017 |
| Issue Closes on:. | 22nd September 2017 |
| Issue Price | Rs.685 – 700 |
| Face Value | Rs.10 |
| Minimum Lot | 21 |
| Minimum Investment | Rs.14,700 |
| Issue Constitutes | 12% |
| Issue Size | Rs.8400 cr |
| Market Cap | Rs.70,000 cr |
| Listing at | NSE & BSE |
| Equity Shares Offered | 12,00,00,000 |
| Equity Shares Prior | 100,00,00,000 |
| Equity Shares after the issue | 100,00,00,000 |
Important Dates:
| Finalization of Basis of Alottment | on or Before 27th September 2017 |
| Initiation of Refunds | on or Before 28th September 2017 |
| Credit of Equity Shares: | on or Before 29th September 2017 |
| Listing Date: | on or Before 3rd October 2017 |
Subscription Details:(Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 03:35 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 2,12,00,000 | 0.0691 | 1.91 | 7.33 |
| NII | 1,59,00,000 | 0.0191 | 0.0202 | 0.27 |
| Retail | 3,71,00,000 | 0.138 | 0.1966 | 0.67 |
| Employee | 20,00,000 | 0.1831 | 0.1872 | 0.49 |
| TOTAL | 8,82,00,000 | 0.086 | 0.579 | 2.13 |
IPO Valuation parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 9.55 | 73.29 | 18.56 | 55.52 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 5 – 10% |
