Public sector lender Canara Bank approved a proposal to dilute 14.50 percent stake in insurance arm Canara HSBC Life Insurance Company via initial public offering (IPO), the lender informed on the exchanges on May 31.
“Canara Bank has accorded approval for initiating the process of diluting 14.50 percent stake of the Bank in its subsidiary M/s Canara HSBC Life Insurance Company Ltd by listing the Company in Stock Exchanges (BSE/NSE) through Initial Public Offer (IPO),” the bank said.
The same shall be subject to approval of Reserve Bank of India and Department of Financial Services, Government of India, the bank said.
It added that the size of the issue, opportune time and modalities of issue will be decided in due course, the bank said.
At the end of the fiscal year 2024, the bank had a 51 percent stake in its insurance subsidiary. And for the January-March quarter of FY24, the insurance arm recorded a profit of Rs 113.31 crore.
The bank is in the plans to sell off 13 percent equity shares in Canara Robeco Asset Management Company (CRAMC) by taking the mutual fund subsidiary public. The public sector lender in a filing to exchanges said it has given the approval to kick off the process for diluting 13 percent stake through an IPO.
The proposed IPO, however, remains subject to approval from the Reserve Bank of India and the department of financial services under the ministry of finance, Government of India, it added.
Canara Bank had in last December given in-principle approval to start the process of listing its mutual fund subsidiary by way of an initial share sale.
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