NEW DELHI, : Canara HSBC Life Insurance Company Ltd on Tuesday set a price band of Rs 100–106 per share for its upcoming initial public offering (IPO), aiming for a valuation of around Rs 10,000 crore at the upper end.
The Rs 2,516-crore IPO will open for subscription on October 10 and close on October 14, with anchor investor bidding scheduled for October 9, as per the company’s public announcement.
Canara HSBC Life Insurance is a joint venture promoted by Canara Bank, which holds a 51% stake, and HSBC Insurance (Asia Pacific) Holdings, owning 26%.
The 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 shares
HSBC Insurance (Asia-Pacific) Holdings Ltd will offload 47.5 lakh shares
Punjab National Bank will divest 9.5 crore shares
Since it is an OFS, the proceeds will go entirely to the selling shareholders, and the company will not receive any funds from the issue.
Incorporated in 2007, Canara HSBC Life has emerged as a key bank-led private player in the Indian life insurance sector.
IPO allocation:
50% for Qualified Institutional Buyers (QIBs)
35% for retail investors
15% for non-institutional investors
Investors can bid for a minimum of 140 shares and in multiples thereafter. The company is expected to debut on the stock market on October 17.
Meanwhile, Canara Robeco Asset Management is also planning an IPO, open for subscription from October 9 to 13.
In December 2024, Canara Bank had received RBI approval to divest its stakes in life insurance and mutual fund ventures.
