Canara HSBC Life Insurance Files Draft Papers with SEBI for IPO
Canara HSBC Life Insurance Company Ltd has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company, backed by Canara Bank, is among the top life insurers in India and has reported a significant increase in profit.
Company Background
Canara HSBC Life Insurance Company Limited is a private sector life insurance provider in India. As of March 31, 2024, it held the third largest assets under management (AUM) among life insurers promoted by public sector entities, according to a CRISIL Report. The company is ranked among the top five bank-led life insurers in India for the number of lives covered in fiscal 2024.
Financial Performance
The company’s profit after tax has experienced a compound annual growth rate (CAGR) of 232.61%, rising from ₹102.43 million in fiscal 2022 to ₹1,133.17 million in fiscal 2024. For the nine months ending December 31, 2024, it reported a profit of ₹848.93 million.
IPO Details
The Canara HSBC IPO consists solely of an offer for sale (OFS), with Canara Bank, HSBC Insurance, and Punjab National Bank collectively selling up to 23.75 crore shares. Canara Bank will sell approximately 13.77 crore shares, while HSBC Insurance (Asia-Pacific) Holdings will divest 0.47 crore shares. Punjab National Bank intends to sell as many as 9.5 crore shares. As it is an OFS, the company will not receive any funds from the issuance.
Canara HSBC Life Insurance Company is a joint venture between Canara Bank, which holds a 51% interest, and HSBC Group’s HSBC Insurance (Asia Pacific) Holdings, which possesses a 26% stake. This is the second IPO from a company supported by Canara Bank, following the recent filing by Canara Robeco Asset Management Company.
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