Asia focused research insights & advisory, Asia Advisors

Vinay Patel

Asia focused research insights & advisory

Asia Advisors

Asia Advisors is an independent financial advisory and research firm working closely with corporates and institutions to provide consulting solutions & research insights. We provide advisory services including capital solutions, business strategy and investment insights.
Firm is headed by Vinay Patel who has close to two decades of experience in research and business development at large, international investment banks such as HSBC and ICICI Securities. Led research efforts in areas of Macroeconomics, Asset Allocation & Investment Strategy for close to a decade in global & domestic research teams. As a business head in Singapore, advised top global investment management firms & Portfolio managers in Asia for India related investments.
Vinay was recently joined by Swapnil Manish, an investment banker and ex-ecommerce entrepreneur with more than 12 years of experience. Swapnil was the TMT banker at BNP Paribas and was part of several large M&A and ECM transactions (Bharti-Zain, Bharti Infratel IPO, Schneider-Zicom among several others). He's also had a stint as an ecommerce entrepreneur having launched & led Mumbai's first online grocery player.

Equity Capital Markets

SBI Life Insurance Co Ltd / Equity Capital Markets

SBI Life Insurance is launching a public offer for sale of 120m shares with parent SBI selling 8m shares and JV partner BNP Cardif selling 4m shares at a price band of 685-700 per share. The company has already placed 25% of the issue with anchor investors (largely long only and sovereign funds - GIC, Canadian Pension, Abu Dhabi Investment Authority among others) at a price of Rs700/share. The company is among the largest private insurers in India and has recorded strong growth in the last couple of years led by unit-linked policies given the upturn in markets. It boasts the largest network under bancassurance channel with SBI as the main bancassurance partner. At the upper end of the price band, the company is valued at Rs700bn or 4.23x Embedded Value (EV) FY17. This is almost a 50% jump compared to last stake placement (3.9% stake) done in Dec'16 at a valuation of Rs460bn. While the company has a strong franchise and good growth prospects, the issue is fully priced and may not offer the kind of listing gains we have seen in smaller issues. Investors with a longer-term horizon may consider subscribing.

SBI Life Insurance is launching a public offer for sale of 120m shares with parent SBI selling 8m shares and JV partner BNP Cardif selling 4m shares at a price band of 685-700 per share. The company has already placed 25% of the issue with anchor investors (largely long only and sovereign funds - GIC, Canadian Pension, Abu Dhabi Investment Authority among others) at a price of Rs700/share. The company is among the largest private insurers in India and has recorded strong growth in the last couple of years led by unit-linked policies given the upturn in markets. It boasts the largest network under bancassurance channel with SBI as the main bancassurance partner. At the upper end of the price band, the company is valued at Rs700bn or 4.23x Embedded Value (EV) FY17. This is almost a 50% jump compared to last stake placement (3.9% stake) done in Dec'16 at a valuation of Rs460bn. While the company has a strong franchise and good growth prospects, the issue is fully priced and may not offer the kind of listing gains we have seen in smaller issues. Investors with a longer-term horizon may consider subscribing. 

SBI Life IPO: Strong Growth Franchise but Richly Priced; Invest With A Longer Horizon

Specialist in Indian Banking and Economic Research

Hemindra Hazari

The equity offering of SBI Life highlights a worrying development of the <a href="https://www.facebook.com/bloombergquint/videos/1792869564344138/" target="_blank">stagnancy</a> of life insurance penetration (life premiums to GDP) in India. The inability of the private sector to expand the life insurance market has compelled these companies to become mutual fund players instead of raising long term savings for the economy. Unit-linked business for SBI Life accounted for 79% in FY2017 and 73.4% in 1QFY2018 of new business earned from individual product business. The market valuation of such a business will be influenced by the vagaries of the equity and debt market and not by the life insurance business. While its listed predecessor, ICICI Prudential Life, is a mutual fund company masquerading as a life insurer, SBI Life delicately balances mutual funds with life insurance.

The equity offering of SBI Life highlights a worrying development of the stagnancy of life insurance penetration (life premiums to GDP) in India. The inability of the private sector to expand the life insurance market has compelled these companies to become mutual fund players instead of raising long term savings for the economy. Unit-linked business for SBI Life accounted for 79% in FY2017 and 73.4% in 1QFY2018 of new business earned from individual product business. The market valuation of such a business will be influenced by the vagaries of the equity and debt market and not by the life insurance business. While its listed predecessor, ICICI Prudential Life, is a mutual fund company masquerading as a life insurer, SBI Life delicately balances mutual funds with life insurance.

SBI Life - Mutual Fund in Life Insurance Clothing?

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<a href="https://www.smartkarma.com/entities/160" target="_blank" data-smartkarma-citation="entities:160:1">State Bank Of India (SBIN IN)</a> and <a href="https://www.smartkarma.com/entities/525" target="_blank" data-smartkarma-citation="entities:525:1">Bnp Paribas (BNP FP)</a> plan to raise up to US$1.3bn by selling a part of their stake in <a href="https://www.smartkarma.com/entities/25899" target="_blank" data-smartkarma-citation="entities:25899:1">SBI Life Insurance Co Ltd (1509885D IN)</a> in its IPO.SBI Life has been the fastest growing private sector insurer for the past few years and is likely to continue holding that position given its parent's expansive network. Owing to its faster growth it is also on the verge of toppling <a href="https://www.smartkarma.com/entities/23608" target="_blank" data-smartkarma-citation="entities:23608:1">ICICI Prudential Life Insurance (IPRU IN)</a> to become the largest player in the private segment. It also seems to be performing better than IPRU on multiple fronts. There isn't much not to like about the IPO, apart from the valuation.

State Bank Of India (SBIN IN) and Bnp Paribas (BNP FP) plan to raise up to US$1.3bn by selling a part of their stake in SBI Life Insurance Co Ltd (1509885D IN) in its IPO.SBI Life has been the fastest growing private sector insurer for the past few years and is likely to continue holding that position given its parent's expansive network. Owing to its faster growth it is also on the verge of toppling ICICI Prudential Life Insurance (IPRU IN) to become the largest player in the private segment. It also seems to be performing better than IPRU on multiple fronts. There isn't much not to like about the IPO, apart from the valuation.

SBI Life IPO - Faster, Better and Soon to Be Bigger but Expensive Nonetheless

India - Politics, Industrials, IT and Large Caps, EMAlpha

Pankaj Sharma

India - Politics, Industrials, IT and Large Caps

Thematic (Sector/Industry)

<ul class=""><li>Infosys CEO Vishal Sikka has resigned after facing continuous verbal assault from one of the co-founders, N R Narayana Murthy.</li><li>In October 2016, Tata Sons board replaced Cyrus Mistry as its Chairman because Ratan Tata was not happy with him.</li><li>There are interesting parallels between the Infosys case and the story at Tata Sons.</li><li>Who is right and who is wrong is a grey area but one size does not fit all.</li><li>The lesson for investors is that ownership and managerial discords are always bad.</li><li>These sudden transitions also create attractive buying opportunities in the market.</li><li>Infosys is a good bet after a 10% correction today. </li></ul>

Infosys CEO Vishal Sikka has resigned after facing continuous verbal assault from one of the co-founders, N R Narayana Murthy.In October 2016, Tata Sons board replaced Cyrus Mistry as its Chairman because Ratan Tata was not happy with him.There are interesting parallels between the Infosys case and the story at Tata Sons.Who is right and who is wrong is a grey area but one size does not fit all.The lesson for investors is that ownership and managerial discords are always bad.These sudden transitions also create attractive buying opportunities in the market.Infosys is a good bet after a 10% correction today. 

Tata Sons = Infosys, Ratan Tata = Narayana Murthy and Cyrus Mistry = Vishal Sikka

Post the Bharatiya Janata Party’s (BJP) decisive victory in the Uttar Pradesh (UP) state elections, alarm bells have commenced tolling in the capital market.  The cause for concern is the BJP’s promise to the UP electorate to waive off all farm loans and provide fresh loans at zero per cent interest. Media, capital market analysts and prominent bankers have jumped on the bandwagon of moral hazard, ruining the loan payment discipline amongst farmers and apprehensions that the sacrosanct fiscal deficit may be breached as a consequence of such ‘populist’ policies. The BJP electoral promise raises some issues which need to be explored further on whether the central government has the fiscal space to provide for a total farm waiver and whether the criticism of moral hazard is credible.

Post the Bharatiya Janata Party’s (BJP) decisive victory in the Uttar Pradesh (UP) state elections, alarm bells have commenced tolling in the capital market.  The cause for concern is the BJP’s promise to the UP electorate to waive off all farm loans and provide fresh loans at zero per cent interest. Media, capital market analysts and prominent bankers have jumped on the bandwagon of moral hazard, ruining the loan payment discipline amongst farmers and apprehensions that the sacrosanct fiscal deficit may be breached as a consequence of such ‘populist’ policies. The BJP electoral promise raises some issues which need to be explored further on whether the central government has the fiscal space to provide for a total farm waiver and whether the criticism of moral hazard is credible.

U.P. Loan Waiver: 'Populist' or a Necessity?

India

ICICI Prudential Life Insurance Company Limited of India provides life insurance services. The Company offers claim processing, electronic insurance accounts, and other services. ICICI Prudential Life Insurance conducts its business in India.

ICICI Prudential Life Insurance (IPRU IN)

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ICICI Prudential Life Insurance (IPRU IN)

SBI Life IPO: Strong Growth Franchise but Richly Priced; Invest With A Longer Horizon

SBI Life Insurance is launching a public offer for sale of 120m shares with parent SBI selling 8m shares and JV partner BNP Cardif selling 4m...

Asia Advisors

SBI Life - Mutual Fund in Life Insurance Clothing?

The equity offering of SBI Life highlights a worrying development of the stagnancy of life insurance penetration (life premiums to GDP) in India....

Hemindra Hazari

SBI Life IPO - Faster, Better and Soon to Be Bigger but Expensive Nonetheless

State Bank Of India (SBIN IN) and Bnp Paribas (BNP FP) plan to raise up to US$1.3bn by selling a part of their stake in SBI Life Insurance Co Ltd...

Sumeet Singh

Tata Sons = Infosys, Ratan Tata = Narayana Murthy and Cyrus Mistry = Vishal Sikka

Infosys CEO Vishal Sikka has resigned after facing continuous verbal assault from one of the co-founders, N R Narayana Murthy. In October 2016,...

Pankaj Sharma

U.P. Loan Waiver: 'Populist' or a Necessity?

Post the Bharatiya Janata Party’s (BJP) decisive victory in the Uttar Pradesh (UP) state elections, alarm bells have commenced tolling in the...

Hemindra Hazari

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)