SBI Life Insurance, the insurance arm of the leading public sector bank in the country, has opened its IPO for subscription today. The decided price band of the IPO is ₹685-₹700 and it will be available at P/IEV multiple of 4.2x (financial year 17) at the upper end of the quoted price band. SBI is targeting the post-issue market capitalisation of around ₹70,000 crores.
SBI Life Insurance is the largest private life insurer in the country in terms of new business generated. It has maintained the same status since Fy10 and has been way ahead of its competitors. Also, the backing of SBI, the largest bank in India makes it even sweeter to subscribe to this IPO. In FY15, SBI Life Insurance accounted for 15.9% of the total new business premium among all the private life insurers the country, the same increased to 20% in FY17. Between Fy15 and FY17, the new business premium of SBI Life Insurance increased by 35.5%, making it look like a great prospect for the coming time.
Just ahead of the IPO subscription, the team at The Indian Wire spoke to a number of experts to know their views on the listing of SBI Life Insurance Company Limited. Almost all of the analysts and experts termed it a great bet for the upcoming time and advised to invest with a long-term gain in mind. According to experts, Indians have just started to get aware of the benefits of life insurance and other financial investments and this will help SBI in registering great growth figures in the time to come. Also, the brand name and huge distribution network of SBI will help the insurance arm get more and more trust from the public.