SBI LIFE INSURANCE COMPANY LTD - Offer for Sale Issue Details - Angel Broking

Mr. Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking Ltd.

Issue Period: June, 15, 2020
Discount to Retail Investor: NA
Cut Off Rate: Rs. 742.60/-
Reservation: 10% of Offer size

Outlook & Valuation: We believe the Indian Life Insurance industry is in a phase of high growth and lower penetration will ensure that the growth remains higher for next couple of years. SBI Life, with its strong brand name and wide distribution network, is one of the best plays for Indian Life Insurance industry. Further, historically, insurance products have seen growth post-pandemic scenario. At the cut off rate Rs. 742.6, the offer for sale is offered at 2.7x its Embedded Value of Rs. 27,640cr. We believe SBI Life will continue to gain market share considering its bancassurance strength and operational efficiency. Hence, we recommended investors to "SUBSCRIBE" to the issue with long term perspective.

Shares of SBI Life Insurance Company Ltd was last trading in BSE at Rs.751.05 as compared to the previous close of Rs. 741.45. The total number of shares traded during the day was 89586 in over 4209 trades.

The stock hit an intraday high of Rs. 761 and intraday low of 725.15. The net turnover during the day was Rs. 67256933.

Source : Equity Bulls

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