The grey market premium (GMP) for Canara HSBC Life shares has dropped from Rs 10 to Rs 2, with the IPO price band set at Rs 106. This IPO is a complete offer-for-sale (OFS) comprising 23.75 crore shares. The issue will remain open for three days, closing on Tuesday, October 14.
Canara HSBC Life Insurance IPO Subscription Status:
By the end of Day 1 of bidding, the overall subscription for the IPO was at 9%, according to data from the Bombay Stock Exchange (BSE). This means that out of all the shares offered, only 9% had been bid for so far.
Retail Individual Investors (RIIs) showed relatively stronger interest, having subscribed to 14% of the shares allocated to them. This indicates that individual investors were more active compared to other groups on the first day.
Non-Institutional Investors (NIIs), which typically include high-net-worth individuals and other investors who do not fall into the retail or institutional categories, subscribed to just 5% of their allocated 3.53 crore shares.
Qualified Institutional Buyers (QIBs), which generally include mutual funds, insurance companies, and other large institutional investors, showed the least enthusiasm, subscribing to only 3% of the 4.71 crore shares set aside for them.
This early subscription pattern suggests modest investor interest across all categories as the IPO proceeds to its next bidding days.
Canara HSBC Life IPO Grey Market Premium (GMP)
Shares of Canara HSBC Life are currently trading at a grey market premium (GMP) of Rs 2. With the IPO price band set at Rs 106, this suggests an estimated listing price of around Rs 108, indicating a premium of about 1.9%.
Note: The grey market premium (GMP) reflects the expected price at which shares might trade unofficially before the official market listing. While it provides an insight into investor sentiment, the actual listing price may differ depending on market conditions at the time of the IPO debut.
Canara HSBC Life Anchor Investors
Canara HSBC Life Insurance Company Ltd announced on Thursday that it has secured over Rs 750 crore from anchor investors, just one day before the IPO opens for public subscription.
About the Canara HSBC Life IPO
The IPO is structured entirely as an Offer For Sale (OFS). Promoters Canara Bank and HSBC Insurance (Asia-Pacific) Holdings Limited are selling up to 13.77 crore shares and 47.5 lakh shares, respectively. Additionally, Punjab National Bank (PNB), an existing investor shareholder, will offload 9.5 crore shares.
Retail investors can participate by bidding for shares worth up to Rs 2 lakh.
The IPO price band is fixed between Rs 100 and Rs 106 per equity share. It is a 100% book-built issue, with a lot size of 140 equity shares.
About the Company
Canara HSBC Life Insurance is a private life insurer in India, jointly promoted by Canara Bank and HSBC Insurance. According to a Crisil report, the company has recorded the third-highest growth in individual weighted premium income (WPI) among bank-led insurers from fiscal 2022 to fiscal 2025.
The company’s Annualised Premium Equivalent (APE) has shown steady growth, reflecting its continuous efforts to broaden its product range and services.
Profit after tax (PAT) grew at a compound annual growth rate (CAGR) of 13.26%, rising from Rs 91.2 crore in fiscal 2023 to Rs 117 crore in fiscal 2025. For the quarter ending June 2025, PAT stood at Rs 23.4 crore. Embedded value also rose significantly, from Rs 4,272 crore at the end of FY23 to Rs 6,111 crore by FY25.
Financially, Canara HSBC Life is well-capitalized, boasting a solvency ratio of 200.42% as of June 2025—well above the regulatory minimum of 150%.
The company has provided coverage to 10.51 million lives so far, underscoring its extensive reach and strong customer trust.
Should You Apply?
According to SBI Securities’, Canara HSBC Life is well-positioned to leverage its strong promoter backing, wide bancassurance network, and diversified product portfolio to sustain its growth.
Key strengths include increasing contributions from bancassurance partners, improving policy persistency, and steady premium growth, all of which support clear visibility for long-term profitability. Additionally, the company’s focus on technology integration and product innovation enhances scalability and customer engagement.
At the upper price band, Canara HSBC Life Insurance is valued at a price-to-embedded-value (P/EV) multiple of 1.6x for Q1 FY26.
SBI Securities also projects that life insurance premiums for bank-led insurers will grow at a CAGR of 22%-25% between FY25 and FY28, reaching Rs 5.4 lakh crore to Rs 5.7 lakh crore. Canara HSBC Life is well-placed to benefit from this industry growth momentum.
Canara HSBC Life IPO Lead Managers
The book-running lead managers for this IPO are SBI Capital Markets, BNP Paribas, HSBC Securities and Capital Markets (India), JM Financial, and Motilal Oswal Investment Advisors.
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