The initial share sale of Canara HSBC Life Insurance saw a 9 per cent subscription on the first day of bidding on Friday, according to NSE data. Bids were placed for 1.51 crore shares against 16.67 crore shares on offer.
Retail individual investors (RIIs) led the demand, with a 14 per cent subscription, while the non-institutional investor category recorded a 5 per cent subscription. Qualified institutional buyers (QIBs) accounted for a 3 per cent subscription.
On Thursday, Canara HSBC Life Insurance said it raised over Rs 750 crore from anchor investors ahead of the offer. The Rs 2,516-crore maiden public offering is scheduled to close on 14 October.
The company has set a price band of Rs 100 to Rs 106 per share, implying a valuation of about Rs 10,000 crore at the upper end. The IPO comprises a complete offer for sale (OFS) of 23.75 crore equity shares by promoters and an investor, meaning the proceeds will go to the selling shareholders rather than the company.
Under the OFS, Canara Bank will divest 13.77 crore shares, HSBC Insurance (Asia-Pacific) Holdings Ltd will sell 47.5 lakh shares, and Punjab National Bank will offload 9.5 crore shares.
The issue allocation includes 50 per cent for qualified institutional buyers, 35 per cent for retail investors, and 15 per cent for non-institutional investors. Investors can bid for a minimum of 140 shares and in multiples thereof.
Canara HSBC Life Insurance, a joint venture between Canara Bank (51 per cent stake) and HSBC Insurance (Asia Pacific) Holdings (26 per cent), was incorporated in 2007. Over the years, it has grown into a significant bank-led private player in India’s life insurance sector.
The company is expected to make its stock market debut on 17 October. In December 2024, Canara Bank had received the Reserve Bank of India’s approval to divest its stake in its life insurance and mutual fund ventures. |
