Canara HSBC Life IPO subscribed 6% on day 1

New Delhi: The initial share sale of Canara HSBC Life Insurance received a muted response from investors, garnering just 6 per cent subscription on the first day of bidding on Friday.

The company’s IPO received bids for 92,46,020 shares against 16,67,15,000 shares on offer, according to details available with the NSE till 12:57 pm. The retail individual investors (RIIs) category was subscribed 9 per cent, and the portion for non-institutional investors received 3 per cent.

The qualified institutional buyers (QIBs) category did not see any participation so far. On Thursday, Canara HSBC Life Insurance Company raised a little over Rs 750 crore from anchor investors. The Rs 2,516-crore maiden public offering of the insurer will conclude on October 14.

The company has set a price band of Rs 100 to Rs 106 per share for its IPO, targeting a valuation of about Rs 10,000 crore at the upper end. Canara HSBC Life Insurance Company is a joint venture promoted by Canara Bank, which holds a 51 per cent stake, and HSBC Group’s HSBC Insurance (Asia Pacific) Holdings, which owns 26 per cent.