SBI Life Insurance Company Limited which had tapped the markets with its offer for sale of 12 cr shares was subscribed. The price band was Rs 685-700. The company had an excellent anchor book where it had allotted 3.18 lakh shares to 69 anchor investors comprising of 104 entities. Mutual funds were allotted 40% of the anchor allocation and the highest allocation was made to HDFC Mutual Fund of 7.64% of the anchor book.

The issue was subscribed an overall 3.58 times but the non-institutional response was far below expectations. While QIB was subscribed 12.56 times. HNI was undersubscribed at 0.70 times. Retail too was undersubscribed at 0.85 times. Employee quota was subscribed at 1.03 times. The real disappointment came from shareholders reservation which received a mere subscription of 0.38 times only. This was even though allotment was to be on a proportionate basis and was skewed in favour of HNI’s. With this category not subscribing for their own category, the shareholder category too was undersubscribed.

With pressure mounting on the listing of ICICI Lombard, SBI too would be on tenterhooks. One hopes that in the greater interest of the markets, these two mega issues do not turn out be disasters on listing.

The full details of the subscription are given below: –