CHAPTER 2

Capital Injections and Market Capitalization

Introduction

2.1.In this chapter and all the following chapters, we will analyze the published accounts of three companies: HDFC Life (HDFC Life), ICICI Prudential Life (ICICI Pru), and SBI Life (SBI Life). ICICI Pru was the first company in the life insurance private sector to have an IPO, in 2016, followed by HDFC Life in 2017 and then SBI Life in 2017.

2.2.We start by looking at the capital injected in each of these three companies from inception to the date of the IPO and then compare the accumulated value of this capital with the IPO price to get the internal rate of return (IRR). We, therefore, deal only with what has happened in the past and look at only one aspect of the business—the ...

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