Canara HSBC Life Insurance Company Files for Initial Public Offering
Canara HSBC Life Insurance Company has filed for an initial public offering (IPO), according to draft papers released on Tuesday. The insurance firm, which manages assets worth over 400 billion rupees ($4.7 billion), did not disclose the size or timing of the IPO but confirmed that it will not issue new shares.
The company is a joint venture between India’s state-owned Canara Bank, which owns 51% of the stake, HSBC Group’s HSBC Insurance (Asia Pacific) Holdings with a 26% stake, and Punjab National Bank holding the remaining 23%. The existing shareholders plan to sell their stakes through the IPO.
Canara Bank intends to sell up to 137.75 million shares, while HSBC Insurance (Asia-Pacific) Holdings plans to sell up to 4.75 million shares. Punjab National Bank aims to sell up to 95 million shares via the listing.
The IPO comes amid rising global market volatility due to fluctuations in US tariff policies, causing companies to reassess their IPO plans to avoid weak demand or failed listings. Despite India being the second-largest market for IPO proceeds in 2024, listings have decreased by nearly 15% this year, according to data compiled by LSEG.
In the fiscal year ending March 2024, Canara HSBC Life Insurance Company reported a 24.3% increase in profit after tax to 1.13 billion rupees compared to the previous year. However, revenue was marginally lower by 1% over the same period. The company has yet to release its results for fiscal 2025.
This is the second IPO filing by a Canara Bank-backed company recently, following last week’s filing by Canara Robeco Asset Management Company. The exchange rate used is $1 = 85.1340 Indian rupees.
