Canara HSBC Life IPO Listing Tomorrow; Investor Focus Shifts to Debut After Strong 2.30× Subscription and Allotment Finalisation

Gurugram, October 16: Investors are now awaiting the market debut of Canara HSBC Life Insurance Company Limited, expected to be listed on NSE and BSE tomorrow, on October 17. Investors who received share allotment for the IPO can visit the NSE and BSE portal tomorrow at 10:00 AM, for witnessing the listing of shares and trade accordingly.

Canara HSBC Life Insurance Company Limited is an Indian company which sells insurance policies. It is a joint venture between Canara Bank (holding 51%), HSBC Insurance (Asia Pacific) Holdings Limited (26%), and Punjab National Bank (23%). The company was established in 2008, and is headquartered in Gurugram, Haryana. For FY25, it reported a profit after tax of ₹1,169.8 crore, an embedded value of ₹61,107 crore, and a solvency ratio of 200.4%.

Canara HSBC Life Overall Subscription At 2.30 Times

The Initial Public Offering (IPO) was oversubscribed 2.30 times, with total bids for 38.26 crore shares received against the 16.67 crore shares on offer. The total value of the bids amounted to ₹4,055.83 crore. The Anchor Investor portion was fully subscribed, raising ₹750.32 crore for 7.07 crore shares. The Qualified Institutional Buyers (QIBs) category was subscribed 7.05 times with bids for 33.28 crore shares against the 4.71 crore shares offered. The Employee portion was also oversubscribed 2.06 times, receiving bids for 31.87 lakh shares against the 15.50 lakh shares available. However, the Non-Institutional Buyers (NIIs) category was undersubscribed at 0.33 times, receiving bids for 1.17 crore shares against an offering of 3.53 crore shares. Similarly, the Retail Investors portion was undersubscribed at 0.42 times, with bids for 3.47 crore shares against the 8.25 crore shares on offer.

Canara HSBC Life Raised ₹750.32 Crore From 33 Anchor Investors

Ahead of the IPO opening, Canara HSBC Life Insurance raised ₹750.32 crore from 33 anchor investors at ₹106 per share. Key institutional participants included HDFC Balanced Advantage Fund, ICICI Prudential Banking & Financial Services Fund, Mirae Asset ELSS Tax Saver Fund, Allianz Global Investors Fund, Pictet Indian Equities, Amundi Funds New Silk Road.

Canara HSBC Life Book Build Issue of ₹2,517.50 Crore

The issue size for the IPO is ₹2,517.50 crore, including an entirely offer for sale of 23.75 crore shares, with no fresh issue element. The IPO opened on October 14, and closed on October 14. The company has set ₹100 to ₹106 per share as the price band. The lot size is 140 shares, amounting to a minimum investment of ₹14,840 (140 shares) by a retail investor at the upper price band. The lot size investment for sNII is 14 lots (1,960 shares), amounting to ₹2,07,760, and for bNII, it is 68 lots (9,520 shares), amounting to ₹10,09,120. SBI Capital Markets Ltd. is the book running lead manager while Kfin Technologies Ltd. is the registrar of the issue.

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