Shriram Life Insurance Co. Ltd Unlisted Shares

Shriram Life Insurance is the Shriram Group company catering to the Life Insurance business of the Group. Let us first know briefly about the Shriram Group businesses and then we will move on to study Life Insurance Business.

Shriram Group
a) Shriram Group, established in 1974, is among the leading corporate houses in India and is a major player in the Indian financial services sector.
b) Shriram Group’s presence in financial services is diverse ranging from Commercial Vehicle Financing, Retail Financing, Enterprise Financing to small business, Housing Finance, Equipment Financing, Life Insurance, General Insurance, Retail Stock Broking, Distribution of Financial Products, and Wealth Advisory Services. Financial Services Companies in the Group manage assets of around INR 1,500.

Partnership with Sanlam to start Insurance Business

Sanlam, a leading financial services group and one of the largest insurers in South Africa has partnered with Shriram Group in both its Life and Non-Life Insurance ventures. The effective leveraging of the network and brand equity of Shriram Group and strategic guidance by the Sanlam Group has facilitated a steady growth of the insurance companies.

Shriram Life Insurance Business

Started in the year 2005, they offer different life insurance plans for their customers which include Individual Plans, Online Plans, and Group Plans. To know more about the plans you can visit. Shriram Life Insurance has a branch network of 588 branches and has an advisor force of 4455.

Financials Metrics

1. New Business Premium- We know when we purchase a policy we pay the premium. That premium when added together from all the users who have taken policy in a given year is known as New Business Premium.

2. Renewal Premium – This is the premium of all the policyholders who have taken insurance policy prior to the current year in which we are calculating the premium. This is an important factor because sometimes people take the policy and then say after 1Y, 2Y or any other year discontinue the premium.

3. Solvency ratio- It is similar to D/E in other businesses. The IRDAI requires life insurers to maintain a minimum Solvency Ratio of 150%. As compared to the minimum requirement of 150%, the Company’s Solvency Ratio, as of 31st March 2019, was 182%.

Market share of the Shriram Life Insurance business

a) As of 30.09.2020, there is a total of 24 Life Insurers in India.

b) The total premium as of 30.09.2020 stands at 1,24,727 Crores. This is the total premium collected in the first 6 months of FY20-21.

c) LIC has a total premium of 89980 Crores (72%).

d) Private players have a total premium of 36709 Crores (28%). Among Private Players, SBI Life (24%), HDFC Life(23%), ICICI Life (12%), Aditya Birla (6%) are the top players in terms of market share.

e) For the first 6M FY20-21 Shriram Life Insurance has only 248 Crores of premiums. This translates into 0.067% market shares among private players.

Source: Link

Shriram Life Insurance FY20-21 Analysis:

(i) The domestic life insurance industry registered 7% growth for new business premium in financial year
2020-21, largely driven by growth in Individual & Group Single premium policy. While private insurers saw their growth at 16 %, Life Insurance Corporation of India (LIC) registered growth at 3 % in last financial year.

(ii) Shriram Life Insurance’s Individual New Business saw a growth of around 15% as compared to 14% growth for private industry and 10% growth for LIC.

(iii) In FY21, the total premium income of the company was Rs. 2019 Crores as compared to Rs. 1729 Crores in the previous year.

(iv) Shriram Life Insurance has the Solvency Ratio of 190%, against the requirement of 150%.

(v) This year Shriram Life Insurance has declared a dividend of Rs.1.67 per share.

(vi) As on 31.03.2021, Shriram Life Insurance has a branch network of 455, and has active advisor force and POSPs of 3784 and 90 respectively.

Shriram Life Insurance Co. Ltd Unlisted Shares Details:

Total Available Shares:	1000
Face Value:	₹ 10 Per Equity Share
ISIN:	INE227H01016
Lot Size:	100 Shares
Current Unlisted Share Price:	₹ Best In Industry Per Equity Share

Promoters And Management:

Shriram Capital Limited and Sanlam Emerging Markets limited are the promoters of the company.

Shareholding Pattern:

Shareholder’s Name	No. of Shares	% of total Shares
Shriram Capital Limited	13,37,43,744	74.56
Sanlam Emerging Markets (Mauritius) Limited	4,12,56,250	23

Financials of Shriram Life Insurance Co. Ltd Unlisted Shares:

Particulars (in Cr)	Mar-16	Mar-17	Mar-18	Mar-19	Mar-20	Mar-21
Number of new policies	266976	200691	247183	276483	274750	295985
New Business Premium	694	734	810	813	700	880
Renewal Premium	328	474	687	886	1029	1138
Sum Assured in Force	80376	81915	96070	106456	105770	122866
Funds under Management	2528	3076	3544	4196	4801	6261
Expense ratio	51%	42%	34%	31%	36%	30%
No. of Offices	568	604	609	588	529	455
Number of Insurance Agent	4422	4508	4498	4455	4436	3784
Profit Before Tax	23	16	93	55	26	111
Profit After Tax	19	17	88	63	35	106
No. of shares	17.50	17.50	17.50	17.53	17.53	17.9
EPS	1.09	0.97	5.03	3.59	2	5.9

Annual Report 2020-21 Annual Report 2019-20 Annual Report 2018-19 Annual Report 2017-18 Annual Report 2016-17

Comparison With Peers:

Peer	Premium (Cr)	Mcap	Mcap/Premium
HDFC Life	20242	135593	6.69
ICICI Life	13000	78000	6
SBI Life	20625	96932	4.69
Shriram Life	885	4700	5.31

Note: 1. We have calculated Shriram Life Mcap by considering a price of Rs.270 per share. 2. The premium for 2020-21 was taken into account. 3. The EPS of 2019-20 is taken for calculating Shriram Life P/E.

Frequently Asked Questions:

Please find below the procedure for buying Shriram Life Insurance Co. Ltd Unlisted Shares at UnlistedZone.

1. You confirm booking of Shriram Life Insurance Co. Ltd Unlisted Shares with us at a trading price.
2. You provide your client master report (ask the broker if not available) along with PAN Card and Cancelled Cheque in case you are not transferring funds from the bank account as mentioned in the CMR Copy. These are KYC documents required as per SEBI regulations.
3. We will provide the bank details.
4. You need to transfer funds in that account.
5. Payment has to be done in RTGS/NEFT/IMPS CHEQUE TRANSFER. No CASH DEPOSIT.
6. Payment has to be done from the same account in which shares are to be credited.
7. We will transfer the shares in 24 hours if funds are credited before 2 pm.

Important Note: Please note that the lock-in period for selling Shriram Life Insurance Co. Ltd Unlisted Shares is 6 months after listing. Hence you can’t sell Shriram Life Insurance Co. Ltd Unlisted Shares which you bought in Pre-IPO for 6 months after its listing. i.e. You can sell it only after 6 months calculated from the listing date. For any queries, please contact us at sales@unlistedzone.com

Please find below the procedure for selling Shriram Life Insurance Co. Ltd Unlisted Shares at UnlistedZone.

1. We will confirm our buying price of Shriram Life Insurance Co. Ltd Unlisted Shares.
2. We will give you our client master report and you will transfer the Shriram Life Insurance Co. Ltd Unlisted Shares to our demat account.
3. We will ask for bank details of yours once the Shriram Life Insurance Co. Ltd Unlisted Shares are received in our demat account..
4. We will transfer the funds in your bank account within 24 hrs of receiving the Shriram Life Insurance Co. Ltd Unlisted Shares.
5. Payment will be made in RTGS / NEFT / CHEQUE TRANSFER/IMPS. No CASH DEPOSIT.
6. Payment will be given in the same account which is linked to demat account or you need to provide the cancelled cheque shows your name to verify. As per SEBI regulations, the transfer of funds in the third party account is not legal and our policy refrain us from doing so.

Note: The price at which we are buying the share is fixed for 3 days. If you cant sell your stock within 3 days, then the price of that day will be applicable when we receive shares in our demat.

Lock-in period of Shriram Life Insurance Co. Ltd Unlisted Shares depends upon category of investors.

1. Venture Capital Funds or Alternate Investment Fund of Category -I or II, or Foreign Venture Capital Investor - lock-in Period of 6 months from the date of acquisition of Shriram Life Insurance Co. Ltd Unlisted Shares.
2. Other Investors (include Retail, HNIs or Body Corporate) lock-in Period of 6 months from the date of listing of IPO of Shriram Life Insurance Co. Ltd Unlisted Shares.

This new SEBI rule was introduced in the month of August-2021, wherein the SEBI has reduced the lock-in period previously from 1 year to 6 months to encourage more and more funds to be invested in startups which are going to public or IPO in near future. Reduction of lock-in is seen as big step and after that many PMS funds are advising their clients to invest in Pre-IPO shares to get the benefit of early stage investment.

DIS - Delivery Instruction Slip is the way through which an investor can sell or transfer the Shriram Life Insurance Co. Ltd Unlisted Shares from his/her demat account to any other demat account. There are two Types of DIS Slip.

1. Offline-DIS - This is an offline mode of transfer of shares wherein the investors needs to fill DIS form and give it to their broker for transferring the shares. Following are the fields which are required to be filled.
- a. ISIN number of Shriram Life Insurance Co. Ltd Unlisted Shares.
- b. Name of Shriram Life Insurance Co. Ltd Unlisted Shares
- c. Quantity of Shriram Life Insurance Co. Ltd Unlisted Shares
- d. Cosideration Amount
- e. Target DP ID and Client ID
- f. Annexure
2. Online DIS - Some of the broker these days gives facility of transferring the Shriram Life Insurance Co. Ltd Unlisted Shares via online DIS. So, please check with your broker whether such facility is available or not. For example: Angel Broking proivdes the facility of Online-DIS from its platform. As an investor he/she simply needs to add a beneficiary into it and send the Shriram Life Insurance Co. Ltd Unlisted Shares by filling the details similar to Ofline-DIS.

Read our article to understand more about this. https://unlistedzone.com/how-do-i-sell-my-unlisted-shares/

In the last 4-5 years, the unlisted share market has become quite big and as a result of that, the ticket size has reduced from usual 5-10 Lac to 35-50k in today's scenario. So, via our UnlistedZone platform, if somebody wants to buy Shriram Life Insurance Co. Ltd Unlisted Shares then minimum investment would be 35-50k.

Yes, buying and selling of unlisted shares in India is 100% legal.

If you sell your shares within 2 years, then you will have to pay Short-term Capital gain on unlisted shares. Short-Term Capital Gain is added in your Income. So, as per individual tax slab you need to pay capital gain tax.

If you sell your shares after 2 years, then you will have to pay Long-term Capital gain on unlisted shares LTCG is 20% with indexation benefits.

Taxes will remain the same irrespective of listing of shares, if bought in unlisted market. Actually, to be eligible for taxes as per listed market, one has to pay STT on buying and selling of shares. But, if you buy in unlisted and sell in listed market, one pay STT only on selling so, taxes of listed market will not be applicable

If you buy Shriram Life Insurance Co. Ltd Unlisted Shares from UnlistedZone then these shares can checked in two ways. However, before we tell you the process of checking of shares, it is intimated that as per SEBI regulations, the shares can be transferred in demat account only.

Check credit of Shriram Life Insurance Co. Ltd Unlisted Shares Instantly?

1.You can download the NSDL or CDSL application from google play-store and check. If you want to check whether your stock broker is registered with NSDL or CDSL then check the following procedure.
By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.
Demat Account = DP ID + Client ID. (16 Characters )
"DP ID is the unique identification of the Broker. Every broker gets a unique number from CDSL or NSDL.By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.
Client ID is the unique identification of the Client. Every client gets this unique number which represents his/her portfolio.
In CDSL, all these characters are numbers (1234567891234567) first 8 digits are DP ID and next 8 digits are Client Id whereas in NSDL the first two characters are letters which are in accordance with the country that you are from (IN12345678912345), then 6 unique digits for Broker and next 8 digits are client ID.
Example:
CDSL = 12345678(DP ID) and 91234567(Client ID).
NSDL = IN123456 (DP ID) and 78912345(Client ID).
Check in brokers application?
Credit of Shriram Life Insurance Co. Ltd Unlisted Shares can be checked in brokers application as well but it takes T+2 days to show the shares.

The Shriram Life Insurance Co. Ltd Unlisted Shares are credited in demat account same day of transferring funds in our company's bank account.

The price of Shriram Life Insurance Co. Ltd Unlisted Shares can be checked in two ways. First, you can join our telegram channel where on daily basis we share the latest prices of all the unlisted shares in the morning and secondly, you can register on UnlistedZone.live platform to see the historical graphs and prices of all the shares at one place.

If you see the thesis of investment in the unlisted shares then it is being done mainly to take the advantage of IPO market. And, if the IPO plans of company get delayed due to market conditions or any other reason then demand suddenly drops in the market. The unlisted market works mainly on demand and supply and if there is no IPO news then getting exit would be difficult.

"UnlistedZone is India's fastest and leading marketplace to buy and sell unlisted shares. In the last 3 years, we have already served more than 1 million users on the platform. The total transactions value done from the platform is already more than 100 Crores. The name of our Co-founders Mr. Umesh Paliwal and Dinesh Gupta publish regularly in leading newspapers like MoneyControl, Business-Standard, ET etc for their views on IPO and Unlisted market. In the last 3 years, UnlistedZone has made a good name for itself in the industry and gained a trust of their users. So, the new investors should not be worried about any kind of fraud that is mostly happens with unkown brokers in the market while doing investment with UnlistedZone."

We at UnlistedZone do the valuation based on 2 methods.

1. We check the last funding that is being done in the Shriram Life Insurance Co. Ltd Unlisted Shares to ascertain the benchmark valuation.
2. If there is no funding happened in the company, then we try to find a business similar to Shriram Life Insurance Co. Ltd Unlisted Shares in the listed space and do comparison method to ascertain the valuation.

As an investor in the unlisted space, we would always recommend that you must check all the risk parameter carefully before investing in the unlisted space.

We source shares either from the employees or initial investors looking to liquidate their Shriram Life Insurance Co. Ltd Unlisted Shares.

Pre-IPO shares means which are planning for an IPO in near future. So, all the shares which are traded on the platform are not Pre-IPO Shares. However, if the company's business is going good and then demand will always be there in the unlisted space, so even if the IPO does not come, the investors can easily liquidate their Shriram Life Insurance Co. Ltd Unlisted Shares in the unlisted market itself.

Rules and regulations of SEBI are applicable in the Unlisted space like lock-in period of 6 months, paying of Stamp Duty, and DP Charges for every transaction etc. However, to become an unlisted broker there is no such regulation by SEBI as of yet.

For tracking news and other information about Shriram Life Insurance Co. Ltd Unlisted Shares, one can visit our website wherein we post news and other information on daily basis and one can also join our telegram channel.

Discussion on Shriram Life Insurance Co. Ltd Unlisted Shares:

1 Comment

Market Wizard

1:00 PM, 25 October 2020

https://www.irdai.gov.in/ADMINCMS/cms/frmGeneral_List.aspx?DF=MBFL&mid=3.1.8

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Shriram Life Insurance Co. Ltd Unlisted Shares

Shriram Life Insurance Co. Ltd Unlisted Shares Details:

Promoters And Management:

Shareholding Pattern:

Financials of Shriram Life Insurance Co. Ltd Unlisted Shares:

Comparison With Peers:

Frequently Asked Questions:

Discussion on Shriram Life Insurance Co. Ltd Unlisted Shares:

1 Comment

Market Wizard

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