About the Company:
HDFC Life (HDFC Standard Life Insurance Company) is a Life insurance provider with its headquarters in Mumbai, offering individual and group insurance.
Company was established in 2000 as a joint venture between Housing Development Finance Corporation Ltd (HDFC), one of India’s leading housing finance institution and Standard Life Aberdeen PLC, leading well known provider of financial savings & investments services in the United Kingdom.
Company is one of the most profitable life insurers, based on Value of New Business (VNB) margin, among the top five private life insurers in India.
Company has a market share among private life insurers in India in terms of total new business premium increasing from 15.8% in Fiscal 2015 to 17.2% in Fiscal
2017.
Company had 66,372 individual agents as at September 30, 2017, which comprise 6.8% of the all private agents in the Indian life insurance industry.
Company has a pan-India presence, comprising 414 branches and spokes across India.
In Fiscal 2012,Company established a wholly-owned subsidiary, HDFC Pension, to operate the pension fund business under the National Pension System.
HDFC Pension is the second largest private pension fund management company in India in terms of assets under management and subscribers in Fiscal 2017.
In Fiscal 2016,Company established their first international subsidiary in the UAE, HDFC International, to operate the reinsurance business.
Management Team:
- Mr.Deepak Parekh (Designation: Nominee Director and Chairman)
- Mr.Sir Gerald Grimstone (Designation: Nominee Director)
- Mr.Keki Mistry (Designation: Nominee Director)
- Mr.Amitabh Chaudhry (Designation: Managing Director & Chief Executive Officer)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| HDFC | 1,229,760,125 | 10.71 |
| Standard Life Mauritius | 698,208,033 | 41.79 |
TOP 10 Shareholders:
| Sr.No. | Shareholder Name | Number of Equity Shares held | Percentage of Equity Share Capital % |
|---|---|---|---|
| 1. | HDFC | 1,229,760,125 | 61.21 |
| 2. | Standard Life Mauritius | 698,208,033 | 34.75 |
| 3. | Azim Premji Trust | 18,951,361 | 0.94 |
| 4. | Mr. Amitabh Chaudhry | 4,564,087 | 0.22 |
| 5. | Ms. Vibha Padalkar | 1,961,750 | 0.10 |
| 6. | Mr. Deepak Parekh | 1,367,877 | 0.07 |
| 7. | Mr. Subrat Mohanty | 1,226,000 | 0.06 |
| 8. | Mr. Rajendra Ghag and Mr. Srinivasan Parthasarathy | 1,158,890 | 0.06 |
| 9. | Mr. Keki Mistry | 1,125,000 | 0.06 |
| 10. | Ms. Renu Karnad | 1,125,000 | 0.06 |
| Total | 1,959,448,123 | 97.53% |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake |
|---|---|---|
| Promoters | ||
| HDFC | 61.21 | 51.69 |
| Standard Life Mauritius | 34.75 | 29.35 |
| Promoter Group Entities | NIL | NIL |
| Total | 95.96% | 81.04% |
Positives for the Company:
- Experienced Leadership Team.
- Strong parentage and a trusted brand.
- Strong financial performance defined by consistent and profitable growth;
- Growing and profitable multi-channel distribution footprint.
- Leading digital platform that provides a superior experience for customers and distributors.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th June 17 |
|---|---|---|---|---|---|---|
| Revenue | 14,016.3 | 17,290.7 | 27,090.6 | 18,066 | 30,554.4 | 6,487.4 |
| Net Profit | 447.7 | 725.4 | 785.5 | 818.4 | 892.1 | 316.4 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| HDFC Standard Life Insurance Company Ltd | 10 | 4.4 | 65.9 | 25.7% | 19.1 |
| ICICI Prudential Insurance Company Limited |
10 | 11.7 | 33.4 | 28.7% | 44.6 |
| SBI Life Insurance Company Limited |
10 | 9.6 | 69.4 | 18.6% | 55.5 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 7th November 2017 |
| Issue Closes on:. | 9th November2017 |
| Issue Price | Rs.275 – 290 |
| Face Value | Rs.10 |
| Retail Allocation | 35% |
| Minimum Lot | 50 |
| Minimum Investment | Rs.14,500 |
| Issue Constitutes | 14.92% |
| Issue Size | Rs.8694.98 cr ($1.3 billion) |
| Market Cap | Rs.58,260 cr ($8.96 billion) |
| Listing at | NSE & BSE |
| Total Equity Shares Offered (OFS) | 29,98,27,818 |
| Equity Shares Prior to the issue | 200,89,73,222 |
| Equity Shares after the issue | 200,89,73,222 |
Important Dates:
| Finalization of Basis of Alottment | on or Before 14th November 2017 |
| Initiation of Refunds | on or Before 15th November 2017 |
| Credit of Equity Shares: | on or Before 16th November 2017 |
| Listing Date: | on or Before 17th November 2017 |
Subscription Details:
| (Subscription-Category-Wise (no. of times) Till time : 07:15 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 5,33,79,158 | 1.396 | 3.41 | 16.5 |
| NII | 4,00,34,328 | 0.23 | 0.322 | 2.2 |
| Retail | 9,34,13,431 | 0.146 | 0.33 | 0.9 |
| Employee | 29,49,520 | 0.437 | 0.66 | 1.2 |
| Reservation Portion Shareholder | 2,99,82,781 | 0.072 | 0.147 | 0.29 |
| TOTAL | 21,97,59,218 | 0.453 | 1.052 | 4.9 |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium | Kostak Rates |
|---|---|---|---|---|
| 16/11/17 | HDFC Life | 275 – 290 | 15- 18 | 300 – 315 |
Note: Grey Market Premium is just an indicative price prevailing in the market ,However it keeps on changing on daily basis based on various conditions in the market.(So don’t apply by just looking at GMP)
IPO Valuation parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 4.4 | 65.9 | 25.7% | 19.1 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 10% |
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| Check IPO Allotment Status: |
|---|
Karvy Websitehttp://kosmic.karvy.com:81/ipotrack/ |
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| Company Contact Info: |
|---|
| HDFC STANDARD LIFE INSURANCE COMPANY LIMITED 13th Floor, Lodha Excelus Apollo Mills Compound N. M. Joshi Marg, Mahalaxmi Mumbai 400 011 Maharashtra, India Telephone: +91 (22) 6751 6666 Email: investor.service@hdfclife.com Website: www.hdfclife.com |
| IPO Registrar Info: |
|---|
| Karvy Computershare Private Limited Karvy Selenium Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda, Hyderabad 500 032, India Telephone: +91 (40) 6716 2222 Facsimile: +91 (40) 2343 1551 Email: einward.ris@karvy.com Investor Grievance ID: hdfclife.ipo@karvy.com Website: www.karisma.karvy.com |
