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SBI Life

Offer for Sale for leading inurance company with issue size of INR 15,625 million

2020

Issue Highlights

  • SBI Life Insurance Company Limited (SBI Life) is India’s leading private life insurance 
  • At 15,625 Mn, the issue size represented 2.1% of the post issue capital 
  • The issue was priced at 2.1% discount to the last close resulting in one of the tightest discounts, signifying strong investor confidence
  • Dow Jones happened to fall ~7% in overnight markets, creating uncertainty in the outlook for Asian markets on the morning of launch 
  • SBICAP team rose to the occasion and stepped up its engagement with domestic and foreign institutional investors driving strong momentum in the transaction, generating   extremely strong response ensuring successful completion of the deal, being 1.96x oversubscribed in the face of one of the most challenging market conditions
  • SBICAP was the only domestic bank in a 3 bank syndicate and successfully led domestic and international institutional demand from the front
  • Only issue in the last 2 years wherein the Clearing price was at a premium to the last closing price driven by strong demand from both marquee domestic and foreign institutional investors
  • Success of the transaction demonstrates a clear theme of flight to high quality offerings, despite volatile markets 

 

SBICAP Value Add

  • Deal Strategy: First point of contact for the client on OFS preparation and regulatory issues given vast experience in handling large transactions in the BFSI sector
  • Covid Challenge: Despite the challenging lockdown circumstances due to Covid, SBICAP has extended full fledged support to the transaction and also adhered to the tight timelines 
  • Execution Support: Provided end to end execution support and handheld the client throughout the OFS process – one of the SEBI-permitted methods to comply with Minimum Public Shareholding (MPS) requirements 
  • Investor Demand: SBICAP generated significant momentum in the deal by bringing in major domestic and foreign institutional investors
  • Timeline: Ensured timely closure of the deal, successfully seizing on the optimal window for the launch 

Ensured Blockbuster Success Despite Challenging Market Conditions

Offer for Sale Size INR 15,625 Mn
Lead Managers SBICAP, HSBC, Nomura
Floor Price INR 725.0
Base Offer size as % of outstanding share capital 2.1%
Base Offer Size INR 15,225 Mn
Clearing Price (Non retail investors) INR 742.6
Closing Price (June 11, 2020) INR 740.9 (NSE)
Bid Open/Close (Non retail investors) June 12, 2020
Bid Open/Close(Retail Investors) June 15, 2020
Overall Bid subscription (Non-retail + retail) 1.96x

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