Canara HSBC Life Insurance IPO Opens Tomorrow: Solid Financials and Steady Growth Ahead

Mumbai, October 9, 2025: Canara HSBC Life Insurance Co. Ltd. is launching an IPO through the book-building process with a total issue size of ₹2,517.50 crore. The entire issue is an offer for sale, comprising 23.75 crore shares. The IPO opens for subscription on October 10, 2025, and closes on October 14, 2025, with allotment expected to be finalized on October 15, 2025. The shares are set to be listed on the BSE and NSE, with a tentative listing date of October 17, 2025.

Canara HSBC Life Insurance IPO price band is fixed between ₹100 and ₹106 per share. The minimum lot size for retail investors is 140 shares, requiring an investment of ₹14,840 at the upper price band. For small non-institutional investors (sNII), the minimum application is 14 lots or 1,960 shares, amounting to ₹2,07,760, while for large non-institutional investors (bNII), the minimum is 68 lots or 9,520 shares, totaling ₹10,09,120.

SBI Capital Markets Ltd. is acting as the book-running lead manager for the IPO, while Kfin Technologies Ltd. has been appointed as the registrar of the issue.

Canara HSBC Life Insurance IPO Stable Financial Development

Canara HSBC Life has maintained an impressive track record of profitability, recording a profit after tax of ₹1,169.8 crore over the past 13 years without interruption. The company’s embedded value has grown at a strong compound annual growth rate (CAGR) of 19%, increasing to ₹63,526 crore in Q1 FY26 from ₹42,719 crore in FY23. Additionally, the insurer maintains a robust solvency ratio of 200.4, well above the minimum requirement set by the IRDAI, reflecting its strong financial health and stability.

Canara HSBC Life Insurance IPO Strength And Distribution Reach In Business

The insurer benefits from the extensive network of branches of Canara Bank and Punjab National Bank, as 87% of its new business premiums are obtained through bancassurance. It insured more than 10.5 million lives with 27 products in the savings, protection, and annuity segments as of June 2025.

Canara HSBC Life Insurance IPO Efficiency In Operations and Customer Credibility

The firm has a claim settlement ratio of 99.38 percent and a cleaning up persistency ratio of 82.5. Its NPS has increased significantly to 75, representing a notable improvement in customer satisfaction and retention.

Canara HSBC Life Insurance IPO Challenges and Risks

The high dependency on bancassurance partners is one of the primary concerns, as well as the exposure to market risk with ULIP products. Alterations in regulatory rules regarding solvency risk or product certification can also impact operations.

Valuation and Outlook

Canara HSBC Life Insurance has an average valuation compared to its peers, priced at approximately 15.9x FY25 earnings. With good parentage and a good balance sheet, the IPO is a good long-term investment.

Canara HSBC Life Insurance is well-positioned for long-term growth, driven by its strong financial performance, increasing embedded value, and stable profitability. Its capital management and robust bancassurance network make it a good option for long-term investors.

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