SBI Life Insurance Co. Ltd. (SBI Life) is a life insurance arm of SBI group that is coming out with a public offer after 23 years. SBI Life India’s largest private life insurer, in terms of New Business Premium generated in each fiscal year, since Fiscal 2010. Between Fiscal 2015 and Fiscal 2017, SBI Life’s New Business Premium generated increased at a CAGR of 35.45%, which is the highest among the top five private life insurers in India. In Fiscal 2017, the company enjoyed a market share of Individual Rated Premium of 20.69% among private life insurers in India and 11.16% of the entire life insurance industry in India. SBI Life was established as a joint venture between the State Bank and BNPPC in 2001. SBI Life is coming out with a maiden IPO by way of offer for sale of 120000000 equity share of Rs. 10 each via book building route with a price band of Rs. 685-700 per share. Issue opens for subscription on 20.09.17 and will close on 22.09.17. Minimum application is to be made for 21 shares and in multiples thereon, thereafter. With this issue, SBI Life hopes to mobilize Rs. 8220 crore to Rs. 8400 crore. On per-formance front, SBI Life has reported total income/net profits of Rs. 17369.42 cr. / Rs. 727.75 cr. (FY14), Rs. 23186.49 cr. / Rs. 814.87 cr. (FY15), Rs. 19119.72 cr. / Rs. 844.10 cr. Rs. 30277.51 cr./ Rs. 954.65 cr. (FY17). For Q1 of the current fiscal it has reported net profit of Rs. 313.45 cr. on a total income of Rs. 6388.37 crore. If we annualize the latest earnings & attribute on the post issue equity then asking price is at a P/E of around 55. For last three years it has posted an average EPS of Rs. 8.95.
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