SBI Life IPO Subscribed 0.09 Times On First Day Of Bidding

SBI Life Insurance Company's Rs 8,400-crore initial public offering, which opened on Wednesday, was subscribed 0.09 times, on the first day of the bidding.

The public issue of the life insurer received bids for 83.67 lakh shares, as against the total issue size of 8.82 crore shares as of 5:00 pm, according to data shared by Axis Capital, one of the lead bankers.

SBI Life Insurance Company is a subsidiary of the country’s largest public sector lender State Bank of India.

The portion of shares reserved for qualified institutional buyers was subscribed 0.06 times, while the portion allocated to retail investors was subscribed 0.16 times. The quota for non-institutional bidders did not see any substantial demand. Shares reserved for employees witnessed bids for 0.18 times the number of shares on offer, while the the shareholder segment saw a subscription of 0.05 times.

The company raised Rs 2,226 crore from 69 anchor investors ahead of the IPO. The shares were allocated at the upper end of its IPO price band of Rs 700 a piece, it said in a media release.

Also Read: All You Need To Know About The SBI Life IPO

Through the initial public offering that ends on Friday, SBI Life will issue up to 12 crore equity shares in the price band of Rs 685-700 a piece. While the public sector lender is selling 8 percent stake, its joint venture partner BNP Paribas Cardif will be divest 4 percent.

The objects of the issue is to achieve the benefits of listing and enhance the “SBI Life brand name and provide liquidity to the existing shareholders,” the insurer’s draft prospectus had stated.