Canara HSBC Life Insurance Company, a prominent bank-led private insurer in India, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO).
The IPO will be a pure offer for sale (OFS) comprising up to 23.75 crore equity shares with a face value of Rs 10 each.
The offering includes up to 13,77,50,000 shares by Canara Bank, up to 47.50 lakh shares by HSBC Insurance (Asia-Pacific) Holdings Limited, and up to 9.50 crore shares by Punjab National Bank, which is categorized as an investor selling shareholder.
Promoted by Canara Bank and HSBC Insurance (Asia-Pacific) Holdings, the company benefits from the strong domestic presence of one of India’s largest public sector banks and the global brand value of HSBC.
As of December 31, 2024, Canara Bank is ranked as the fourth-largest public sector bank in India by total assets, according to a CRISIL report.
Incorporated in 2007, Canara HSBC Life Insurance has steadily built its presence in the Indian life insurance sector. It is ranked third in assets under management (AUM) among public-sector-promoted life insurers as of March 31, 2024, and stood among the top five bank-led life insurers based on the number of lives covered in FY24.
Notably, the company ranked second among public sector bank-led life insurers by lives covered during the same period.
The company’s growth trajectory has been marked by strong financial performance. Its Annualized Premium Equivalent (APE) has consistently grown over the years. The company’s profit after tax surged at a CAGR of 232.61%, rising from Rs 102.43 million in FY22 to Rs 1,133.17 million in FY24. For the nine months ended December 31, 2024, profit stood at Rs 848.93 million.
The equity shares are proposed to be listed on both the BSE and the National Stock Exchange (NSE).
SBI Capital Markets, BNP Paribas, HSBC Securities & Capital Markets (India), JM Financial, and Motilal Oswal Investment Advisors are acting as the Book Running Lead Managers (BRLMs) to the issue.
Also read: Urban Company files DRHP for Rs 1,900-crore IPO
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