New IPO: Canara HSBC Life Insurance files DRHP with SEBI; Canara Bank, PNB, others to offload stake in OFS, details inside

Canara HSBC Life Insurance Company Limited has filed its draft red herring prospectus (DRHP) with the market regulator, Securities and Exchange Board of India (SEBI), for an Initial Public Offering (IPO).

IPO details

This is an offer for sale (OFS). The company will not get any proceeds from IPO. 

Under the OFS, Canara Bank, HSBC Insurance (Asia-Pacific) Holdings Limited, and Punjab National Bank will sell their stake.

The offer comprises of up to 23,75,00,000 equity shares of face value of Rs 10 each, including up to 13,77,50,000 equity shares by Canara Bank (promoter selling shareholder); up to 47, 50,000 equity shares by HSBC Insurance (Asia-Pacific) Holdings Limited (promoter selling shareholder); and up to 9,50,00,000 equity shares by Punjab National Bank (investor selling shareholder).

Gurugram-headquartered bancassurance company Canara HSBC Life Insurance is a joint venture among Canara Bank (51% stake), HSBC Insurance (Asia-Pacific) Holdings (26% stake) stake and Punjab National Bank (23% stake). The company was started in 2007.

The profit after tax (PAT) of the company has increased at a CAGR of 232.61 per cent from Rs 102.43 million in fiscal 2022 to Rs 1,133.17 million in fiscal 2024 and was Rs 848.93 million in the nine months ended December 31, 2024.

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SBI Capital Markets Limited, BNP Paribas, HSBC Securities & Capital Markets (India) Private Limited, JM Financial Limited and Motilal Oswal Investment Advisors Limited are acting as the book running lead managers to the issue.