Canara HSBC Life IPO opens today for subscription: Should you subscribe? Check key details

Canara HSBC Life IPO opens for subscription in primary market. 

Canara HSBC Life Insurance Company IPO will open today for public subscription in the primary market. It's a joint venture promoted by Canara Bank, which holds a 51 percent stake, and HSBC Group's HSBC Insurance (Asia Pacific) Holdings, which owns 26 percent.

Key details to know ahead of subscription

1) Anchor investment: The company raised a little over Rs 750 crore from anchor investors, including ICICI Prudential Mutual Fund (MF), HDFC MF, DSP MF, WhiteOak Capital, Mirae Asset MF, Allianz Global Investors Fund, Amundi Funds, Matthews India Fund, Tata MF, Motilal Oswal MF and Societe Generale.

2) Rs 2,517-crore public offering will open for subscription on October 10 and conclude on October 14.

3) The price band has been fixed at Rs 100 to Rs 106 per share, targeting for a valuation of about Rs 10,000 crore at the upper end.

4) Incorporated in 2007, Canara HSBC Life has grown into a prominent bank led private player in the Indian life insurance sector.

5) Canara HSBC Life IPO allotment is expected by October 15, while share listing is scheduled to place on on October 17.

Canara HSBC Life IPO: Should you subscribe?

The analysts at the SBI Securities noted key highlights in the issue, including, established parentage and trusted brand, extensive distribution network enabling pan-India presence, well-diversified and customer-centric product portfolio and focus on long-term value creation.

Among its growth strategies, the analysts added, enhance penetration in existing distribution network to facilitate growth, strengthen multi-channel distribution network to increase and diversify revenue streams, continue focus on customer centricity to improve customer satisfaction and retention, leverage technology and analytics to enhance productivity and efficiency to improve customer experience and manage risks, ensure profitable growth through balanced portfolio approach and enhance brand awareness and capture growth opportunities through diversified marketing channels.

The research report also highlighted key risks, including Bancassurance partner concentration, persistency risk and regulatory risk.

Canara HSBC Life IPO GMP Today Price

According to platforms tracking the grey market activities, the shares of Canara HSBC Life are commanding a GMP of around 9-10 percent in the unregulated market. Investorgain quoted a GMP of Rs 10 for the shares of the company, indicating a listing gain of 9.43 percent. IPO Watch quoted a GMP of a little over 10 percent.

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