HDFC Life IPO Review: Expensive Valuations for a Business Model Similar to Peers

HDFC Standard Life IPO - Great Brand, Prudent Product Mix but Not Such a Great Price

SBI Life IPO - Faster, Better and Soon to Be Bigger but Expensive Nonetheless

ICICI Lombard IPO - Bigger Doesn't Always Mean Better

ICICI Pru Life IPO Review - Cheaper than HDFC-Max Life but Still Might Be Only Fairly Valued

Asia focused research insights & advisory, Asia Advisors

Vinay Patel

Asia focused research insights & advisory

Asia Advisors

Asia Advisors is an independent financial advisory and research firm working closely with corporates and institutions to provide consulting solutions & research insights. We provide advisory services including capital solutions, business strategy and investment insights.
Firm is headed by Vinay Patel who has close to two decades of experience in research and business development at large, international investment banks such as HSBC and ICICI Securities. Led research efforts in areas of Macroeconomics, Asset Allocation & Investment Strategy for close to a decade in global & domestic research teams. As a business head in Singapore, advised top global investment management firms & Portfolio managers in Asia for India related investments.
Vinay was recently joined by Swapnil Manish, an investment banker and ex-ecommerce entrepreneur with more than 12 years of experience. Swapnil was the TMT banker at BNP Paribas and was part of several large M&A and ECM transactions (Bharti-Zain, Bharti Infratel IPO, Schneider-Zicom among several others). He's also had a stint as an ecommerce entrepreneur having launched & led Mumbai's first online grocery player.

Equity Capital Markets

SBI Life Insurance Co Ltd / Equity Capital Markets

<p>SBI Life Insurance is launching a public offer for sale of 120m shares with parent SBI selling 8m shares and JV partner BNP Cardif selling 4m shares at a price band of 685-700 per share. The company has already placed 25% of the issue with anchor investors (largely long only and sovereign funds - GIC, Canadian Pension, Abu Dhabi Investment Authority among others) at a price of Rs700/share. The company is among the largest private insurers in India and has recorded strong growth in the last couple of years led by unit-linked policies given the upturn in markets. It boasts the largest network under bancassurance channel with SBI as the main bancassurance partner. At the upper end of the price band, the company is valued at Rs700bn or 4.23x Embedded Value (EV) FY17. This is almost a 50% jump compared to last stake placement (3.9% stake) done in Dec'16 at a valuation of Rs460bn.<strong> While the company has a strong franchise and good growth prospects, the issue is fully priced and may not offer the kind of listing gains we have seen in smaller issues. Investors with a longer-term horizon may consider subscribing. </strong></p>

SBI Life Insurance is launching a public offer for sale of 120m shares with parent SBI selling 8m shares and JV partner BNP Cardif selling 4m shares at a price band of 685-700 per share. The company has already placed 25% of the issue with anchor investors (largely long only and sovereign funds - GIC, Canadian Pension, Abu Dhabi Investment Authority among others) at a price of Rs700/share. The company is among the largest private insurers in India and has recorded strong growth in the last couple of years led by unit-linked policies given the upturn in markets. It boasts the largest network under bancassurance channel with SBI as the main bancassurance partner. At the upper end of the price band, the company is valued at Rs700bn or 4.23x Embedded Value (EV) FY17. This is almost a 50% jump compared to last stake placement (3.9% stake) done in Dec'16 at a valuation of Rs460bn. While the company has a strong franchise and good growth prospects, the issue is fully priced and may not offer the kind of listing gains we have seen in smaller issues. Investors with a longer-term horizon may consider subscribing. 

ICICI Prudential Life Insurance (IPRU IN)

ICICI Lombard General Insurance Company (ICICIGI IN)

SBI Life IPO: Strong Growth Franchise but Richly Priced; Invest With A Longer Horizon