Canara HSBC Life Insurance Files For IPO
Canara HSBC Life Insurance Company Ltd has filed preliminary papers with the capital markets regulator Sebi to float an initial public offering (IPO). This development comes shortly after Canara Robeco Asset Management Company (AMC) filed draft IPO papers with Sebi.
The IPO is a complete offer-for-sale (OFS) of 23.75 crore equity shares by promoters and an investor, according to the draft red herring prospectus (DRHP) filed on Monday. 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 is an OFS, the company will not receive any proceeds from the public issue. Canara HSBC Life Insurance Company is a joint venture promoted by Canara Bank, which holds a 51% stake, and HSBC Group’s HSBC Insurance (Asia Pacific) Holdings, which owns 26%. Incorporated in 2007, the company has grown into a prominent bank-led private player in the Indian life insurance sector.
The filing comes at a time when the IPO market is facing a potential slowdown due to volatility in the equity market. The book-running lead managers to the issue are SBI Capital Markets Ltd, BNP Paribas, HSBC Securities & Capital Markets (India) Private Ltd, JM Financial Ltd, and Motilal Oswal Investment Advisors Ltd.
