HDFC Standard Life Insurance Company, a subsidiary of mortgage lender HDFC, on Tuesday rose above the 400 level for the first time, two sessions after the stock made its market debut on BSE and NSE.
At 3:07 pm, the stock was trading 8.50 percent or 30.15 points higher at 385 level on the BSE. The stock is up 24.42 percent since its listing on the bourses. It closed 8.62 percent or 30.60 points higher at 385.80 on the BSE. Earlier in the day, the stock hit a new all-time high of 417.65 level at 12:39 pm. The stock listed with an over 7 per cent premium on November 17 against its issue price of Rs 290.
The stock debuted at Rs 311, up 7.24 per cent from the issue price on the BSE. The company's market valuation stood at Rs 69,671.19 crore. The Rs 8,695-crore IPO of the company was subscribed 4.90 times during November 7-9. The qualified institutional buyers (QIBs) portion was oversubscribed 16.60 times, non-institutional investors 2.29 times and retail investors 94 per cent, data available with the NSE showed.
Price band for the offer was fixed at Rs 275-290 per share. The IPO comprised sale of 1,91,246,050 equity shares, amounting to 9.55 per cent stake, by HDFC and up to 1,08,581,768 scrips, or 5.42 per cent, holding by Standard Life Mauritius.
HDFC Standard Life was established as a joint venture between HDFC and Standard Life Aberdeen plc (global investment company), initially through its wholly owned subsidiary The Standard Life Assurance Company and now through its wholly owned subsidiary, Standard Life Mauritius.
The company has a pan-India presence, comprising 414 branches across India as of September 30, supported by a workforce of 16,544 full-time employees. The global coordinators and book running lead managers of the IPO are Morgan Stanley India Company, HDFC Bank, Credit Suisse Securities (India), CLSA India and Nomura Financial Advisory and Securities (India).
The book running lead managers are Edelweiss Financial Services, Haitong Securities India, IDFC Bank, IIFL Holdings and UBS Securities India. The insurer's solvency ratio as at March 31, 2015, March 31, 2016, March 31, 2017 and June 30, 2017 was 196.1%, 198.4%, 191.6% and 197.5%, respectively.
IRDAI has prescribed a minimum 150% solvency ratio limit. The solvency ratio is derived out of the solvency margin (available solvency margin to required solvency margin) which denotes the amount by which the assets of the insurer exceed its liabilities. The insurer had a balance sheet with total net worth of Rs 4,150 crore.
The life insurer generated profit after tax of Rs 886.92 crore and delivered a return on equity of 25.6%, return on invested capital of 40.7% and operating return on embedded value of 21.7% during fiscal 2017. As at June 30, 2017, the firm had total assets under management (AUMs) of Rs 94,750 crore and Indian Embedded Value of Rs 13,220 crore.