Canara Bank promoted private life insurer Canara HSBC Life Insurance Company will open its IPO (initial public offering) for public subscription next week on October 10. This would be the second subsidiary of Canara Bank launching IPO next week immediately after Canara Robeco Asset Management Company offer which is scheduled during October 9-13.
The IPO consists of solely offer-for-sale of up to 23.75 crore shares by promoters - Canara Bank, HSBC Insurance Asia-Pacific Holdings (the member of the Hongkong and Shanghai Banking Corporation group) - and investor Punjab National Bank, which is equivalent to 25 percent of its paid-up equity.
Canara Bank holds 51 percent equity stake in Canara HSBC Life Insurance Company, followed by HSBC Insurance (Asia-Pacific) Holdings (26 percent stake) and Punjab National Bank (23 percent).
As it is a complete offer-for-sale, the IPO proceeds, excluding offer expenses, will be received by these three selling shareholders, and the company will not receive any money.
The insurance company will launch its IPO anchor book for a day on October 9, while the subscription for the public will remain open till October 14.
The IPO share allotment will be finalised by October 15, while the trading in Canara HSBC Life Insurance Company shares will commence on the BSE and NSE effective October 17.
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The company has reserved half of its public issue size for qualified institutional buyers, 15 percent for non-institutional investors, and the remainder 35 percent for retail investors. The price band for the public issue will be announced in the coming couple of days.
Incorporated in 2007, Canara HSBC Life Insurance ranked third amongst public sector bank led life insurers in India, having asset under management of Rs 43,639.5 crore as of June 2025, increasing 6 percent from Rs 41,166.4 crore as of March 2025.
On the financial front, the life insurance company that competes with three listed peers - SBI Life Insurance Company, HDFC Life Insurance Company, and ICICI Prudential Life Insurance Company, has recorded profit at Rs 23.4 crore in the quarter ended June 2025, growing 25.2 percent compared to Rs 18.7 crore in same period last year. Annualised premium equivalent during the same period increased 4.4 percent to Rs 492.8 crore, up from Rs 472 crore.
Profit in the fiscal 2025 rose 3.2 percent to Rs 117 crore, up from Rs 113.3 crore in the previous year. Annualised premium equivalent soared 23.9 percent to Rs 2,339.4 crore, up from Rs 1,887.8 crore and value of new business (VNB) at Rs 446 crore increased 18.1 percent over Rs 377.6 crore but VNB margin dropped to 19.07 percent from 20 percent during the same period.
The book running lead managers handling the Canara HSBC Life Insurance Company IPO are SBI Capital Markets, BNP Paribas, HSBC Securities and Capital Markets (India), JM Financial, and Motilal Oswal Investment Advisors.
Meanwhile, Canara HSBC Life Insurance would be the fifth mainboard equity IPO hitting Dalal Street next week along with Tata Capital, LG Electronics, Rubicon Research and Canara Robeco Asset Management Company IPOs.
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