Canara HSBC Life Insurance Company Ltd has garnered a strong response from institutional investors, raising ₹750.32 crore through its anchor book just a day before its initial public offering (IPO) opens for public subscription. The robust participation underscores investor confidence in the insurer’s growth trajectory and business fundamentals.
Anchor Investment Details
As per the company’s regulatory filing, 7.08 crore equity shares were allotted to 33 anchor investors at ₹106 per share, the upper end of the price band. The total anchor investment amounts to ₹750.32 crore.
The anchor book attracted several marquee domestic and global institutions, including ICICI Prudential Mutual Fund, HDFC Mutual Fund, DSP Mutual Fund, WhiteOak Capital, Mirae Asset MF, Allianz Global Investors Fund, Amundi Funds, Matthews India Fund, Tata MF, Motilal Oswal MF, and Société Générale.
Canara HSBC Life IPO Overview
The company’s ₹2,516 crore IPO will open for subscription on October 10 and close on October 14, with a price band of ₹100–₹106 per share. At the upper price band, Canara HSBC Life is seeking a market capitalisation of around ₹10,000 crore.
This IPO is an entirely offer for sale (OFS) issue, with 23.75 crore equity shares being divested by existing shareholders. The breakdown of the OFS is as follows:
- Canara Bank: 13.77 crore shares
- HSBC Insurance (Asia-Pacific) Holdings: 47.5 lakh shares
- Punjab National Bank: 9.5 crore shares
Since it is a pure OFS, no proceeds will go to the company — all funds raised will be directed to the selling shareholders.
Investor Allocation and Lot Size
The IPO structure reserves 50% of the issue for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for Non-Institutional Investors (NIIs). Investors can bid in lots of 140 shares and in multiples thereof.
About Canara HSBC Life Insurance
Founded in 2007, Canara HSBC Life Insurance Company Ltd operates as a joint venture led by Canara Bank (51%), HSBC Insurance (Asia-Pacific) Holdings (26%), and Punjab National Bank. The company leverages a bank-led distribution model to reach customers across India and has grown into a prominent private life insurer over the past decade.
Summary
Canara HSBC Life Insurance has raised ₹750 crore from 33 anchor investors ahead of its ₹2,516 crore IPO, reflecting strong institutional interest. The IPO, opening on October 10, is a pure offer for sale, with Canara Bank, HSBC Insurance, and PNB as selling shareholders. Priced between ₹100 and ₹106 per share, the issue values the insurer at about ₹10,000 crore, reinforcing its position as a leading player in India’s life insurance sector.
Disclaimer:
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