Ahead of its IPO launch for the public, Canara HSBC Life Insurance Company, the second subsidiary of public sector lender Canara Bank, has mobilised Rs 750.3 crore via anchor book on October 9.
The private life insurance company is raising Rs 2,517.50 crore via initial public offering (IPO) which comprises of entirely offer-for-sale of 23.75 crore shares by all three shareholders - Canara Bank, HSBC Insurance (Asia-Pacific) Holdings, and Punjab National Bank, with no fresh issue component. The price band for the offer is Rs 100-106 per share.
The company will not receive any money from the offer as all the funds will go to above-mentioned selling shareholders.
Canara HSBC Life Insurance Company has finalised allocation of 7.07 crore equity shares to 33 anchor investors at the upper price band.
Global investors like Ashoka WhiteOak, Allianz Global, Pictet, Amundi Funds, Marshall Wace Investment, Societe Generale, Integrated Core Strategies, Copthall Mauritius Investment, and Susquehanna Pacific participated in the anchor book.
Among domestic institutional investors, eight mutual fund houses like ICICI Prudential Mutual Fund, HDFC AMC, Mirae Asset, DSP MF, WhiteOak Capital, Quant Mutual Fund, and Motilal Oswal AMC also acquired 4.26 crore equity shares in the insurance company for Rs 452.55 crore.
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The company has reserved half of its offer size for qualified institutional buyers, 15 percent for non-institutional investors, and the remainder 35 percent shares for retail investors. The IPO share allotment will be finalised by October 15, and the trading in Canara HSBC Life Insurance Company shares will commence on the bourses effective October 17.
Canara HSBC Life Insurance that competes with three listed peers like SBI Life, HDFC Life, and ICICI Prudential Life has recorded profit at Rs 117 crore for the fiscal 2025, growing 3.2 percent from Rs 113.3 crore in previous year.
Annualised premium equivalent (APE) grew by 23.9 percent to Rs 2,339.4 crore, increasing from Rs 1,887.8 crore. Value of new business soared 18.1 percent to Rs 446 crore compared to Rs 377.6 crore but value of new business margin dropped to 19.07 percent from 20 percent in the same fiscal periods.
Profit in the quarter ended June 2025 surged 25.2 percent to Rs 23.4 crore, and APE increased by 4.4 percent to Rs 492.8 crore compared to corresponding period of last fiscal.
The assets under management at the end of June 2025 stood at Rs 43,639.5 crore, against Rs 41,166.41 crore as of March 2025.
SBI Capital Markets, BNP Paribas, HSBC Securities and Capital Markets (India), JM Financial, and Motilal Oswal Investment Advisors are acting as merchant bankers for the Canara HSBC Life Insurance Company IPO.
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