News

Canara HSBC Life IPO: Canara HSBC Life Insurance Company IPO is set to hit the stock market tomorrow, on October 10. At the upper end, the company is targeting a valuation of about Rs 10,000 crore.

The IPO will be a complete offer for sale (OFS), which means the company itself will not receive any proceeds from the issue.

Instead, the funds raised will go to the existing shareholders who are selling their stakes.

Add Zee Business as a Preferred Source

Under the OFS structure, Canara Bank will divest 13.77 crore shares, HSBC Insurance (Asia-Pacific) Holdings will sell 47.5 lakh shares, and Punjab National Bank will offload 9.5 crore shares.

In total, 23.75 crore equity shares will be sold through the IPO.

Canara HSBC Life Insurance Company Ltd has fixed a price band of Rs 100 to Rs 106 per share for its upcoming initial public offering (IPO).

The Rs 2,516 crore IPO will open for subscription on October 10 and close on October 14, while anchor investors will be able to place their bids on October 9.

The stock market debut is expected on October 17.

Canara HSBC Life Insurance was incorporated in 2007 as a joint venture promoted by Canara Bank and HSBC Group’s insurance arm.

Canara Bank currently holds a 51 per cent stake in the company, while HSBC Insurance (Asia-Pacific) Holdings owns 26 per cent.

Over the years, the company has established itself as a leading player in the private life insurance sector, with a strong presence in bancassurance through its promoter banks.

: Canara Robeco IPO Opens: Check out price band, key dates, lot size and other details before investing

In terms of allocation, half of the issue has been reserved for qualified institutional buyers, 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.

Investors looking to subscribe to the IPO will be able to bid for a minimum of 140 shares and in multiples thereof. If we calculate at the upper band price, the minimum amount of investment required by a retail investor is Rs 14,840.

The launch of Canara HSBC Life’s IPO comes close on the heels of another public issue from the Canara Bank group.

Canara Robeco Asset Management Company is also set to hit the market with its IPO, which will remain open for subscription from October 9 to 13.

In December 2024, Canara Bank received approval from the Reserve Bank of India to divest stakes in both its life insurance and mutual fund businesses.

These listings are part of the bank’s strategy to unlock value from its subsidiaries.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

Anubhav Maurya is a Senior Sub-Editor at Zee Business, focusing on the stock market, personal finance, corporate news, and related sectors.

He has previously worked with Republic Business ...LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.