Canara HSBC Life to launch Rs 2,516 crore IPO on Oct 10

New Delhi: Canara HSBC Life Insurance Company Ltd on Tuesday set a price band of Rs 100 to Rs 106 per share for its upcoming IPO, targeting for 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, HSBC Insurance (Asia-Pacific) Holdings Ltd will offload 47.5 lakh shares and Punjab National Bank plans to divest 9.5 crore equity shares.

Since it’s an OFS, the company will not receive any proceeds from the public issue, instead funds will go to selling shareholders.

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.

Like Canara HSBC Life, Canara Robeco Asset Management is coming out with its IPO, which would be available for subscription during October 9 to 13.

In December 2024, Canara Bank announced that it got Reserve Bank’s approval for a proposal to divest the bank’s stake in life insurance and mutual fund ventures. PTI