Canara HSBC Life Insurance Company, a joint venture between state-owned Canara Bank and HSBC Group’s HSBC Insurance (Asia Pacific) Holdings, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to launch its initial public offering (IPO).
Key Details of the IPO
The proposed IPO is an offer for sale (OFS) by existing shareholders, with no fresh issue component. The insurer plans to sell up to 23.7 crore equity shares of ₹10 each. Canara Bank will disinvest 13.77 crore equity shares, while HSBC Insurance (Asia-Pacific) Holdings Limited and Punjab National Bank (PNB) will sell 4.75 crore and 9.5 crore shares, respectively.
Current Shareholding Pattern
Currently, Canara Bank holds a 51% stake in Canara HSBC Life Insurance, followed by HSBC Insurance (Asia-Pacific) Holdings with 26%, and PNB with 23%. As the issue is solely an OFS, the company will not receive any proceeds from the public offer; the funds raised will go to the selling shareholders.
Financial Highlights
Incorporated in 2007, Canara HSBC Life Insurance has shown significant financial growth. Its profit after tax has increased at a compound annual growth rate (CAGR) of 232.61% from ₹10.24 crore in fiscal 2022 to ₹113.32 crore in fiscal 2024. The company reported a profit of ₹84.89 crore in the nine months ending December 31, 2024. As of December 31, 2024, it had provided coverage to 9.23 million lives.
The IPO is managed by BNP Paribas, SBI Capital Markets, HSBC Securities & Capital Markets, Motilal Oswal Investment Advisors, and JM Financial as book-running lead managers. The shares are expected to be listed on the Bombay Stock Exchange and National Stock Exchange.
This development follows closely after Canara Robeco Asset Management Company filed a DRHP with Sebi for its IPO, which will be a pure OFS of 4.98 crore equity shares.
