Canara HSBC Life Insurance IPO: Canara Bank and PNB to Divest Stakes
Canara HSBC Life Insurance Company Ltd has filed preliminary papers with the capital markets regulator Sebi to launch an initial public offering (IPO). The move comes shortly after Canara Robeco Asset Management Company 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 April 29, 2025. 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.
As it’s an OFS, the company won’t receive any proceeds from the public issue. Canara HSBC Life Insurance Company is a joint venture between 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 private player in India’s life insurance sector.
The IPO filing comes at a time when the IPO market is facing a potential slowdown due to volatility in the equity market. SBI Capital Markets Ltd, BNP Paribas, HSBC Securities & Capital Markets (India) Private Ltd, JM Financial Ltd, and Motilal Oswal Investment Advisors Ltd are the book-running lead managers to the issue.
In December 2024, Canara Bank announced that it received RBI approval for its proposal to divest its stake in life insurance and mutual fund ventures. This development aligns with the bank’s strategy to unlock value from its subsidiaries.
The IPO market has been witnessing significant activity in recent times, with various companies filing papers to go public. The success of these IPOs will depend on market conditions and investor appetite in the coming months.
