The Rs 8,400-crore IPO of SBI Life Insurance garnered 10 per cent subscription on Wednesday, the first day of the issue.
The institutional investor portion of the issue was subscribed six per cent, wealthy investors’ portion stood at one per cent and the retail portion was subscribed 16 per cent, data provided on the stock exchanges showed.
SBI Life, India’s largest private sector life insurer, is making the biggest IPO offer since Coal India's Rs 15,300-crore offering in October 2010.
The insurer on Tuesday allowed the sale of 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.
The price band for the IPO is between Rs 685 and Rs 700 per share. The entire IPO comprises sale offer by the State Bank of India (SBI) and BNP Paribas. SBI is selling shares worth Rs 5,600 crore, while BNP is selling shares worth Rs 2,800 crore in the IPO. Following the IPO, the promoter holding in SBI Life will drop to 84 per cent, from 96 per cent.