HDFC Standard Life Insurance Company made its stock market debut at a premium of 6.9 percent at Rs 310.90 per share compared to an issue price of Rs 290 apiece. The stock rose as much as 20 percent to Rs 349 thereafter.
The country’s third-largest private sector life insurance company’ s Rs 8,695-crore initial public offering was subscribed 4.9 times. The offer was the biggest in the life insurance sector.
HDFC Life, is a joint venture between HDFC and Standard Life Plc. HDFC raised nearly Rs 5,550 crore (sold 9.52 percent stake) and Standard Life Rs 3,150 crore (sold 5.4 percent stake) at the top end of the price band.
The company offers a product portfolio of 32 individual and 10 group products including protection, pension, savings and investment and health, along with children’s and women’s plans.
It has 66,372 individual agents – comprising 6.8 percent of all private agents in the Indian life insurance industry – and 125 banking tie-ups including HDFC Bank giving it access to a huge branch network. Nearly 60 percent of HDFC Life’s business comes from bancassurance and individual agents while the rest is from direct sales and brokers.