State-owned Canara Bank on Monday said its subsidiary, Canara HSBC Life Insurance Company Ltd, has received capital market regulator Sebi's nod for its Updated Draft Red Herring Prospectus (UDRHP) for its proposed initial public offering (IPO).
On September 15, SEBI had given its final observations on the proposal and directed Canara HSBC Life Insurance to file an updated red herring prospectus, Canara Bank had said. The promoter bank had planned to list its life insurance subsidiary in the Oct-Dec quarter and raise Rs 1,000 crore from the stake sale, based on market conditions.
Earlier this week, Canara Robeco Asset Management Company (AMC ), the asset management subsidiary of state-run Canara Bank, has received approval from SEBI for its UDRHP on September 29, paving the way for its proposed IPO.
At 12:15 pm on October 3, Canara Bank shares were trading 1.75% higher at Rs 126.06 apiece.
The offer comprises an offer for sale of up to 23.75 crore shares of face value of Rs 10 each, including up to 13.77 crore shares by Canara Bank, up to 47 lakh shares by HSBC Insurance (Asia-Pacific) Holdings and up to 9.5 crore shares by Punjab National Bank.
Canara HSBC Life Insurance Company is a three-way venture promoted by Canara Bank and HSBC Insurance (Asia-Pacific) Holdings, a member of The Hongkong and Shanghai Banking Corporation Ltd (HSBC) group, and another state-owned lender Punjab National Bank (PNB).
The company had the third-highest assets under management (AUM) amongst public sector-promoted led life insurers, as of March 31, 2024.
Incorporated in 2007, Canara HSBC Life Insurance Company has grown into a prominent bank-led private player in the Indian life insurance sector as it ranks second amongst public sector bank-led life insurers in India based on the number of lives covered for Fiscal 2024.
The Annualised Premium Equivalent (APE) of the company has consistently grown, reflecting efforts to expand products and services and increase market presence, as per the DRHP filed by the insurer.
The profit after tax of the company has increased at a CAGR of 232.61 per cent from Rs 10.2 crore in Fiscal 2022 to Rs 113.3 crore in Fiscal 2024 and was Rs 84.8 crore in the nine months ended December 31, 2024, it said.
With inputs from PTI
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
