Canara HSBC Life Insurance Sets IPO Price Band Amid Anticipated Growth

Canara HSBC Life Insurance Company announces an IPO with a Rs 100-106 per share price band, targeting a Rs 10,000 crore valuation. The IPO, open from October 10-14, involves a complete offer for sale by promoters. The company boasts a CAGR of 17%, outrunning the sector's average growth.

Canara HSBC Life Insurance Company Ltd has announced a price band of Rs 100 to Rs 106 per share for its upcoming initial public offering (IPO), aiming for a valuation nearing Rs 10,000 crore at the top end. This public offering is set to open for subscription from October 10 to October 14, with a special bidding window for anchor investors on October 9.

The IPO is a total offer for sale (OFS) of 23.75 crore equity shares, led by promoters and investors. Under this OFS, Canara Bank is selling 13.77 crore shares, representing a 14.5% stake. In contrast, HSBC Insurance (Asia-Pacific) Holdings Ltd is divesting 47.5 lakh shares, and Punjab National Bank plans to offload 9.5 crore shares. Following this stake sale, Canara Bank's holding will decrease to 36.50%, with HSBC Insurance holding 25.50% and PNB retaining 10%.

Founded in 2007, Canara HSBC Life has emerged as a leading private player in the Indian life insurance market, offering diverse products like saving plans, endowment plans, and retirement solutions. Notably, its compounded annual growth rate (CAGR) stands at 17%, significant compared to the industry's average of 10-12%. The company reported a net profit of Rs 117 crore in FY25, up from Rs 113.32 crore the previous year, with an increased embedded value of Rs 6,111 crore.

(With inputs from agencies.)