The IPO of HDFC Life opens today and closes on November 9th. The company is offering shares in the price band of Rs 275-290.
About HDFC Life
Established in the year 2000, HDFC Life is a joint venture between HDFC and Standard Life Aberdeen PLC. It is also one of the most profitable insurers in the country based on Value of New Business (VNB) margin. It is the third private insurers with a 16.5% market share in total private sector premiums. The company has built strong relationships with over 125 major bancassurance partners which include non-banking financial companies, micro-finance institutions and small finance banks. HDFC Life also has a pan India presence with 414 branches.
A wholly owned subsidiary HDFC Pension was incorporated in 2012 to operate pension fund under the National Pension System (NPS). As of 2QFY18 it had Rs 1162.98 crores AUM making it the second largest private pension fund scheme.
Business Details.
| Key Financials | |||||
|---|---|---|---|---|---|
| Y/E March (` cr) | FY13 | FY14 | FY15 | FY16 | FY17 |
| Premium Income | 11446 | 11976 | 14762 | 16179 | 19275 |
| % chg | 5 | 23 | 10 | 19 | |
| PAT | 447 | 725 | 786 | 817 | 887 |
| % chg | 62 | 8 | 4 | 9 | |
| AUM | 67047 | 74247 | 91742 | ||
| Embedded Value | 8888 | 10233 | 12471 | ||
| ROE | 21 | 34 | 31 | 26 | 23 |
| PE | 130 | 80 | 74 | 71 | 66 |
| P/BV | 27 | 27 | 23 | 19 | 15 |
| P/EV | 6.6 | 5.7 | 4.7 |
.
| Life insurance Premium as % of GDP | |
|---|---|
| South Africa | 11.5 |
| Sout Korea | 7.4 |
| Japan | 7.2 |
| Singapore | 5.5 |
| Thailand | 3.7 |
| US | 3 |
| India | 2.7 |
| China | 2.3 |
| Indonesia | 1.6 |
.
| Protection margin across Asia | |
|---|---|
| India | 92 |
| China | 88 |
| South Korea | 85 |
| Thailand | 78 |
| Indonesia | 79 |
| Japan | 56 |
| Singapore | 56 |
This means that for every $100 dollars worth of protection requirement only $8 was insured.
| Shareholding pattern | ||||
|---|---|---|---|---|
| Pre-Issue | Post-Issue | |||
| No. of shares | % | No. of shares | % | |
| Promoter group | 2008973222 | 100 | 1709145404 | 85 |
| Other | 299827818 | 15 | ||
| Total | 2008973222 | 100 | 2008973222 | 100 |
Issue details
IPO size: Rs Rs 8695 crores at the upper price band
Face value: Rs 10
Retail portion: 35%
Lot size: 50 shares and in multiples thereafter
Maximum subscription amount: Rs.2,00,000
Listing on: both NSE and BSE
IPO timetable
Basis of allotment 14 Nov
Unblocking of funds 15 Nov
Credit to demat accounts 16 Nov
Listing on stock exchanges 17 Nov
To apply for the IPO of HDFC Life follow these steps
Keep track of all the upcoming IPOs here
Allotment details can be checked here.
