Canara HSBC Life Insurance IPO subscribed 9% on 1st day of bidding

New Delhi: The initial share sale of Canara HSBC Life Insurance was subscribed 9 per cent on the first day of bidding on Friday. The initial share sale received bids for 1,51,32,320 shares against 16,67,15,000 shares on offer, as per NSE data.

Retail individual investors category got subscribed 14 per cent, and the quota meant for non-institutional investors received 5 per cent. The portion for qualified institutional buyers subscribed 3 per cent.

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.

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, HSBC Insurance (Asia-Pacific) Holdings Ltd will offload 47.5 lakh shares, and Punjab National Bank plans to divest 9.5 crore equity shares.

In terms of issue allocation, 50 per cent of the IPO is reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors. Further, investors can bid for a minimum of 140 shares and in multiples thereof.

Canara HSBC Life is expected to make its stock market debut on October 17.