HDFC Standard Life Insurance Company Limited – Debuts with gains of over 18%

Shares of HDFC Standard Life Insurance Company Limited listed on the bourses and had a stellar debut gaining 18.71% on the BSE. The company had tapped the capital markets through an offer for sale of 29.98 cr shares in a price band of Rs 275-290. The valuations were expensive compared to listed peers and even more expensive than the recently listed SBI Life which has been trading at a discount since listing and as of last Friday’s close was down 5.75%.

Earlier the company had allotted 8 cr shares to 89 Anchor investors comprising of 126 entities. The public issue saw excellent support from institutional investors who subscribed their book 16.6 times. The HNI portion was subscribed 2.28 times, Retail 0.94 times and shareholder reservation subscribed 0.30 times. Overall the public issue was subscribed 4.9 times.

Exchange Open High Low Close Net Change % Gain/ Loss Wt.Avg Volume Delivery Del %age
BSE 311.00 369.00 307.65 344.25 54.25 18.71 329.23 21416667 9583787 44.75
NSE 310.00 369.00 307.00 344.60 54.60 18.83 327.25 168836552 82044782 48.59
Total 190253219 91628569 48.16

Shares opened at Rs 311 on the BSE and Rs 310 on the NSE, against the issue price of Rs 295. The low of the day was Rs 307.65 and Rs 307 respectively. The high of the day was Rs 369 on both the exchanges. This happened to a large extent on account of short covering. A data point to this effect is the fact that NSE witnessed a volume of 352.93 lakh shares at the discovered price of Rs 310. In the next half hour, the volume was 665.35 lakh shares at a weighted average price of Rs 317.71 and high of Rs 329.90. Between 10.30 am and 11 am the high was Rs 369 and the weighted average of 347.57 lakh shares was Rs 347.40. The volume thereafter reduced significantly. It was 322.50 lakh shares in the remaining 4 and a half hours which means all the action was over by 11 am itself. The average traded price kept on climbing as the share traded between Rs 438-446 thereafter.

The total traded volume on the two exchanges combined was 1902.53 lakh shares which was 63.45% of the IPO size of 2998.27 lakh shares. Delivery volume was 916.28 lakh shares which was 48.16% of traded volume and 30.56% of IPO size. If one were to exclude the anchor portion, delivery percentage was 41.69%. The weighted average of the day’s trade was a healthy Rs 329.23 on the BSE and Rs 327.25 on the NSE. There was one institutional trade which was reported in the form of Nomura which bought 192.62 lakh shares at an average cost of Rs 325.13 and invested Rs 626 crs.

The share closed at Rs 344.25 on the BSE, a gain of Rs 54.25 or 18.71%. On the NSE the closing price was Rs 344.60, a gain of Rs 54.60 or 18.83%. The share had a great debut and it was all about the brand HDFC.

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