Canara HSBC Life’s Rs 2,516-cr IPO on Oct 10

Canara HSBC Life Insurance Company Ltd set a price band of Rs 100 to Rs 106 per share for its upcoming initial public offering (IPO), targeting a valuation of about Rs 10,000 crore at the upper end. The insurer’s Rs 2,516-crore public offering would open for subscription on October 10 and conclude on October 14. The bidding for anchor investors would open for a day on October 9, according to a public announcement.

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. Canara HSBC Life’s IPO is a complete offer for sale (OFS) of 23.75 crore equity shares by promoters and an investor.

Under the OFS, Canara Bank will sell 13.77 crore equity shares, amounting to 14.5 per cent stake; HSBC Insurance (Asia-Pacific) Holdings Ltd will offload 47.5 lakh shares or 0.5 per cent holding; and Punjab National Bank plans to divest 9.5 crore equity shares, equivalent to 10 per cent stake. Following the stake-sale, Canara Bank will hold 36.50 per cent stake, HSBC Insurance 25.50 per cent and PNB 10 per cent.

Since it’s an OFS, the company will not receive any proceeds from the public issue, instead funds will go to selling shareholders. Incorporated in 2007, Canara HSBC Life has grown into a prominent bank-led private player in the Indian life insurance sector. The company offers a comprehensive range of life insurance products tailored for both individual and group customers. Its offerings primarily include saving and endowment plans, term (pure protection) plans, retirement solutions, group credit life and protection plans.

As of March 31, 2025, Canara Bank managed 9,849 branches across India. It also has access to the branch network of 7 regional rural banks through distribution agreements. Anuj Dayal Mathur, MD and CEO of the company, said that the insurance industry is expected to see growth following the reduction of GST.