SBI Life raises Rs 2,226 crore from anchor investors
Country’s largest private sector life insurer SBI Life Insurance Company has allotted 31.8 million shares worth Rs 2,226 crore to 69 anchor investors. The allotment was made at Rs 700 apiece, the top-end of the IPO prove band.
Some of the anchor investors are Blackrock, Canada Pension, Govt of Singapore, Aranda, Abu Dhabi Investment Authority, HSBC, Wells Fargo, Kuwait Investment Authority and Rochdale.
“At Rs 700, the issue is offered at 4.2 times its embedded value of Rs 16,538 crore. This is a little higher than 3.8 times for ICICI Prudential. We believe the premium valuation for SBI is justified due to its higher incremental market share gain, and hence we recommended investors to subscribe to the issue with long-term perspective,” said a note by Angel Broking