Canara HSBC Life Insurance Raises Rs 750 Crore From Anchor Investors Prior To IPO Launch

Canara HSBC Life Insurance Ltd., has raised Rs 750 crore from anchor investors on Thursday, ahead of its initial public offering. The company allotted 7.08 crore shares at Rs 106 apiece to 33 anchor investors.

HDFC Trustee Company Ltd. A/C HDFC Balanced Advantage Fund got the highest allocation of 7.49%. ICICI Prudential Exports And Services Fund and ICICI Prudential Innovation Fund got the second highest allotment of 6.50% and Mirae Asset ELSS Tax Saver Fund Miraatsfd got 5.94% stake in the company.

Eight domestic mutual funds have applied through 18 schemes, the insurance firm said in an exchange filing on Thursday. They have collectively netted 60.31% of the anchor portion. HDFC Mutual Fund, ICICI Prudential, Motilal Oswal and Whiteoak were the major fund houses in this category.

SBI Capital Markets Ltd., PNB Paribas, HSBC Securities & Capital Markets India Pvt., JM Financial Ltd. and Motilal Oswal Investment Advisors Ltd. are the lead managers for the deal.

The company will launch its initial public offering on Friday to raise up to Rs 2,517 crore. The company has set a price band of Rs 100-106 per share for its three-day IPO. Canara HSBC Life Insurance will include 23.7 crore offer-for-sale. The minimum application lot size is 140 shares.

The offer, which concludes on Tuesday, is set to list on the BSE and the National Stock Exchange.

The proceeds from the OFS will go to the selling shareholders and not to Canara HSBC Life Insurance. Canara Bank, HSBC Insurance (Asia-Pacific) Holding Ltd. were the promoters offloading stake and Punjab National Bank is the investor selling shareholder.