Canara HSBC Life Insurance IPO To Open On Oct. 10, Check Details

Canara Bank Ltd's arm, Canara HSBC Life Insurance Co., will be opening its initial public offering on Oct. 10, according to an exchange filing from the company on Sunday.

The IPO is set to close on Oct. 14. It will entirely be an offer for sale of up to 23.75 crore shares. This includes up to 13.77 crore shares from Canara Bank, around 47 lakh shares from HSBC Insurance (Asia-Pacific) Holdings, and 9.5 crore shares from Punjab National Bank.

It will allocate a select portion of the shares to anchor investors a day before it launches. The price band for the IPO was okayed by regulators and will be announced soon.

Canara HSBC Life Insurance Co is a three-way venture promoted by Canara Bank and HSBC Insurance (Asia-Pacific) Holdings, a member of The Hongkong and Shanghai Banking Corporation Ltd. (HSBC) group, and another state-owned lender Punjab National Bank.

The company had the third-highest assets under management among public sector-promoted life insurers, as of March 31, 2024.

The Securities and Exchange Board of India approved the IPO on Sept. 15.

Incorporated in 2007, Canara HSBC Life Insurance Company has grown into a prominent bank-led private player in the Indian life insurance sector as it ranks second amongst public sector bank-led life insurers in India based on the number of lives covered for Fiscal 2024.

The annualised premium equivalent of the company has consistently grown, reflecting efforts to expand products and services and increase market presence, as per the DRHP filed by the insurer.

The profit after tax of the company has increased at a compound annual growth rate of 232.61% from Rs 10.2 crore in fiscal 2022 to Rs 113.3 crore in fiscal 2024 and was Rs 84.8 crore in the nine months ended Dec. 31, 2024, it said.

(With PTI Inputs)