SBI Life shares trade 5% higher on stock market debut
Shares of SBI Life Insurance Co. Ltd debuted 5% higher on Tuesday. SBI Life Insurance, a subsidiary of India’s largest lender State Bank of India, made stock market debut on Tuesday. Its shares rose as much as 6 per cent to an intraday high of Rs. 740 compared to its issue price of Rs. 700.
Shares price of SBI Life opened 4.75% higher on the BSE at Rs733.30 a piece, compared to the issue price of Rs.700, which was the upper end of the price band of Rs. 685-700 per share.
SBI Life’s IPO was purely an offer for sale by existing investors. SBI has sold 8 crore shares while BNP Paribas Cardif SA has sold nearly 4 crore shares through this IPO.
Analysts says that the issue was fairly priced and had recommended investors to park their funds in the IPO from a long-term perspective.
SBI Life Insurance’s IPO was the biggest to hit the market since Coal India Ltd’s issue in October 2010. It is also the fourth-largest IPO by issue size.
SBI Life Insurance is the second Indian life insurer to go public. Last year, ICICI Prudential Life Insurance Co. Ltd raised Rs6,000 crore in its initial share sale.