SBI Life Insurance is all set to launch its initial public offering (IPO) next week on September 20. The life insurance firm plans to raise Rs 8,500 crore and has fixed the price band for the issue at Rs 685 to Rs 700 a share.
In an interview to CNBC-TV18, Santosh Singh, Head of Research-India at Haitong Securities spoke at length about SBI Life's IPO. He also shared his views on Bharat Financial Inclusion and IndusInd Bank deal.
Singh said price band is around expected line. It is coming at around 3.1 times FY19 embedded value, he added.
"All the insurance IPOs, which have come up, ICICI Lombard as well, all of them are high grade companies and even SBI Life is one of the topmost life insurance company. I do not think there will be any problem with the IPO," said Singh.
He further said that what happens post IPO, in next two-three years, is more important than the IPO of the companies as of now.
State Bank of India (SBI) as a standalone entity is not doing badly and all the subsidiaries are high value, doing well. So a significant portion of current market cap of SBI is coming from subsidiaries, he further mentioned.
On IndusInd deal front, he said Bharat Financial Inclusion and IndusInd Bank deal is value accretive for both shareholders.Watch accompanying video for more details.