Canara HSBC Life To launch ₹2,516-Crore IPO On October 10 At ₹100–₹106 Price Band

New Delhi, Oct 7: Canara HSBC Life Insurance Company Ltd on Tuesday set a price band of Rs 100 to Rs 106 per share for its upcoming initial public offering (IPO), targeting a valuation of about Rs 10,000 crore at the upper end.

The insurer's Rs 2,516-crore public offering would open for subscription on October 10 and conclude on October 14. The bidding for anchor investors would open for a day on October 9, according to a public announcement.

Joint Venture and Stakeholders

Canara HSBC Life Insurance Company is a joint venture promoted by Canara Bank, which holds a 51 per cent stake, and HSBC Group's HSBC Insurance (Asia Pacific) Holdings, which owns 26 per cent.

Canara HSBC Life's IPO is a complete offer for sale (OFS) of 23.75 crore equity shares by promoters and an investor.

Offer for Sale Details

Under the OFS, Canara Bank will sell 13.77 crore equity shares, amounting to 14.5 per cent stake; HSBC Insurance (Asia-Pacific) Holdings Ltd will offload 47.5 lakh shares or 0.5 per cent holding; and Punjab National Bank plans to divest 9.5 crore equity shares, equivalent to 10 per cent stake.

Following the stake-sale, Canara Bank will hold 36.50 per cent stake, HSBC Insurance 25.50 per cent and PNB 10 per cent.

No Fresh Issue of Shares

Since it's an OFS, the company will not receive any proceeds from the public issue, instead funds will go to selling shareholders.

Company Profile and Product Offerings

Incorporated in 2007, Canara HSBC Life has grown into a prominent bank-led private player in the Indian life insurance sector. The company offers a comprehensive range of life insurance products tailored for both individual and group customers. Its offerings primarily include saving and endowment plans, term (pure protection) plans, retirement solutions, group credit life and protection plans.

Distribution Network

As of March 31, 2025, Canara Bank managed 9,849 branches across India. It also has access to the branch network of 7 regional rural banks through distribution agreements.

CEO Comments on Growth and Industry Outlook

Anuj Dayal Mathur, MD and CEO of the company, said that the insurance industry is expected to see growth following the reduction of GST.

During the last three years, Canara HSBC Life has grown faster than the industry, with a compounded annual growth rate (CAGR) of about 17 per cent, which is way higher than the industry's 10-12 per cent. The growth was driven by robust bancassurance partnerships, which offers systematic access to customers and allows competitive pricing, he added.

Financial Performance

On the financial front, the company reported a net profit of Rs 117 crore in FY25 compared to Rs 113.32 crore in the preceding financial year. Its embedded value increased to Rs 6,111 crore as of March 31, 2025 from Rs 5,180 crore a year ago.

IPO Allocation and Bidding Details

In terms of issue allocation, 50 per cent of the IPO is reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors. Further, investors can bid for a minimum of 140 shares and in multiples thereof.

Market Debut and Parallel Offerings

Canara HSBC Life is expected to make its stock market debut on October 17. Like Canara HSBC Life, Canara Robeco Asset Management is coming out with its IPO, which would be available for subscription during October 9 to 13.

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Regulatory Approval Background

In December 2024, Canara Bank announced that it got Reserve Bank's approval for a proposal to divest the bank's stake in life insurance and mutual fund ventures.

(Disclaimer: Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)