Canara HSBC Life Insurance IPO: Canara Bank, PNB to Divest Stakes

New Delhi, Apr 29 (PTI) Canara HSBC Life Insurance Company Ltd has filed preliminary papers with capital markets regulator Sebi to float an initial public offering (IPO).

This comes days after Canara Robeco Asset Management Company (AMC) filed draft IPO papers with the Securities and Exchange Board of India (Sebi).

Like Canara Robeco AMC, Canara HSBC Life Insurance Company's IPO is a complete offer-for-sale (OFS) of 23.75 crore equity shares by promoters and an investor, according to the draft red herring prospectus (DRHP) filed on Monday.

Under the OFS, Canara Bank will sell 13.77 crore equity shares, HSBC Insurance (Asia-Pacific) Holdings Ltd will offload 47.5 lakh shares and Punjab National Bank plans to divest 9.5 crore equity shares.

Since it is an OFS, the company will not receive any proceeds from the public issue.


Canara HSBC Life Insurance Company is a joint venture promoted by Canara Bank, which holds a 51 per cent stake, and HSBC Group's HSBC Insurance (Asia Pacific) Holdings, which owns 26 per cent.

Incorporated in 2007, Canara HSBC Life Insurance Company has grown into a prominent bank led private player in the Indian life insurance sector.

The company filed draft papers at a time when the IPO market is staring at a slowdown owing to volatility in the equity market.

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

In December 2024, Canara Bank announced that it got Reserve Bank's approval for a proposal to divest the bank's stake in life insurance and mutual fund ventures.