Canara HSBC Life Insurance IPO Gets SEBI Approval

Canara Bank has announced that its subsidiary, Canara HSBC Life Insurance Co., has received approval from the Securities and Exchange Board of India for its proposed initial public offering.

Canara HSBC Life Insurance has received communication from SEBI vide letter dated Sept. 15 on final observations and for filing updated red herring prospectus, Canara Bank said in a regulatory filing.

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

Canara HSBC Life Insurance Company 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 (PNB).

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

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 CAGR 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 inputs from PTI)