The IPO, entirely an OFS, will open for public subscription on Friday, October 10, and close on Tuesday, October 14. The anchor investor bidding will take place on Thursday, October 9, a day before the IPO opens.
The offer comprises up to 23.75 crore equity shares of face value Rs 10 each, being sold by promoter shareholders Canara Bank and HSBC Insurance (Asia-Pacific) Holdings, along with investor shareholder Punjab National Bank.
The floor price represents 10 times the face value, while the cap price is 10.6 times the face value. The IPO also includes a reservation of up to 15.5 lakh shares for eligible employees, with a discount of Rs 10 per equity share on their portion.
About Canara HSBC Life Insurance Company IPO
The offer includes up to 13.77 crore equity shares from Canara Bank, 4.75 lakh shares from HSBC Insurance (Asia-Pacific) Holdings, and 5.22 crore shares from Punjab National Bank. Canara Bank and HSBC are promoter selling shareholders, while Punjab National Bank is participating as an investor selling shareholder.
The offer does not involve any fresh issue of shares and serves purely as an exit opportunity for existing shareholders. Consequently, the net proceeds from the IPO will accrue to the selling shareholders, not the company.
Valuation
The company’s price-to-earnings (P/E) ratio, based on diluted EPS for FY25, stands at 81.30 times at the upper end of the price band, slightly above the industry average P/E ratio of 79.37. The weighted average return on net worth for FY23, FY22, and FY21 stands at 7.86%.Investors can bid for a minimum of 140 equity shares and in multiples thereof.
About the Company
Canara HSBC Life Insurance offers a diverse product portfolio that includes savings and endowment plans, term protection plans, retirement solutions, group life and credit protection products, and government-backed schemes such as the Pradhan Mantri Jeevan Jyoti Bima Yojana.
Listing and Offer Structure
The IPO will be conducted via the Book Building Process in accordance with Sebi’s ICDR regulations. The equity shares will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), with NSE designated as the lead exchange.
As per the offer structure, not more than 50% of the net offer is reserved for qualified institutional buyers (QIBs), a minimum of 15% for non-institutional investors (NIIs), and at least 35% for retail investors. Additionally, 1.55 million shares are reserved for eligible employees under the employee quota.
Book Running Lead Managers
The IPO is being managed by a consortium of book-running lead managers, including SBI Capital Markets, BNP Paribas, HSBC Securities, JM Financial, and Motilal Oswal Investment Advisors. KFin Technologies is the registrar for the offer.
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