IPO Watch: Canara HSBC Life Insurance files draft papers with SEBI

IPO Watch: Canara HSBC Life Insurance Company Ltd has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

Canara HSBC Life Insurance Company Limited is a private sector life insurance provider in India, backed by Canara Bank, which is the fourth largest public sector bank in the country based on total assets as of December 31, 2024.

As of March 31, 2024, the company held the third largest assets under management (AUM) among life insurers promoted by public sector entities, according to a CRISIL Report, and is ranked among the top five bank-led life insurers in India for the number of lives covered in fiscal 2024.

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, with a profit of ₹848.93 million reported for the nine months ending December 31, 2024.

IPO details

Canara HSBC IPO consist solely of an offer for sale (OFS), with Canara Bank, HSBC Insurance, and Punjab National Bank collectively selling up to 23.75 crore shares. As it is an OFS, the company will not receive any funds from the issuance.

Canara Bank will be selling approximately 13.77 crore shares in this offering, 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.

Canara HSBC Life Insurance Company is a joint venture established by 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 in recent times, following the recent filing by Canara Robeco Asset Management Company.

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