The grey market premium (GMP) for the IPO is modest, trading at less than 1% above the price band of Rs 106 per share. This IPO is a pure offer-for-sale (OFS), involving the sale of 23.75 crore shares by existing shareholders. The issue will close on Tuesday, October 14.
Canara HSBC Life Insurance IPO Subscription Status
As per BSE data, the Canara HSBC Life Insurance IPO saw an overall subscription of 27% by the end of Day 2.Retail Individual Investors (RIIs) demonstrated comparatively stronger interest, subscribing to 27% of the shares reserved for them.
Non-Institutional Investors (NIIs)—which include high-net-worth individuals and other non-retail, non-institutional investors—subscribed to 14% of their allotted 3.53 crore shares.
Qualified Institutional Buyers (QIBs), such as mutual funds, insurance firms, and other major financial institutions, showed the least interest so far, subscribing to just 32% of their 4.71 crore share quota.
Canara HSBC Life IPO: Grey Market Premium (GMP) Update
Shares of Canara HSBC Life are currently quoting a grey market premium (GMP) of 0.94%. Based on the IPO price band of Rs 106, this translates to an estimated listing price of approximately Rs 107.
Note: The grey market premium offers an informal indication of investor sentiment and potential listing price. However, it’s important to remember that actual listing performance may vary depending on prevailing market conditions at the time of 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.
Canara HSBC Life Insurance IPO Overview
Canara HSBC Life Insurance has launched its Initial Public Offering (IPO) as a complete Offer for Sale (OFS). Under this structure, no new shares are issued—instead, existing shareholders will sell part of their stakes. Promoter Canara Bank is offering up to 13.77 crore shares, while HSBC Insurance (Asia-Pacific) Holdings Limited is putting up 47.5 lakh shares for sale. In addition, Punjab National Bank (PNB), another existing investor, plans to divest 9.5 crore shares.
Retail investors have the opportunity to participate in the IPO, with a maximum bid limit of Rs 2 lakh. The IPO is a 100% book-built issue, and the price band has been set between Rs 100 and Rs 106 per equity share. The minimum investment applies to a lot size of 140 shares.
Company Background and Growth Trajectory
Canara HSBC Life Insurance is a private sector life insurance company in India, jointly promoted by Canara Bank and HSBC Insurance. According to a report by CRISIL, the company has demonstrated one of the fastest growth rates in individual weighted premium income (WPI) among bank-promoted life insurers between fiscal years 2022 and 2025.
A key indicator of the company’s robust performance is its Annualised Premium Equivalent (APE), which has shown consistent growth. This reflects Canara HSBC Life’s strategic focus on expanding its product portfolio and enhancing customer services.
Strong Financial Performance
Canara HSBC Life has shown impressive financial strength over recent years. Its Profit After Tax (PAT) has grown at a Compound Annual Growth Rate (CAGR) of 13.26%, rising from Rs 91.2 crore in FY23 to Rs 117 crore in FY25. For the quarter ending June 2025, the company posted a PAT of Rs 23.4 crore.
The company’s embedded value, which measures the consolidated value of its operations and future profits, has also grown significantly—from Rs 4,272 crore at the end of FY23 to Rs 6,111 crore by FY25.
Furthermore, Canara HSBC Life maintains a strong capital base, with a solvency ratio of 200.42% as of June 2025—well above the regulatory threshold of 150%, indicating solid financial health.
Market Reach and Customer Base
With insurance coverage extended to over 10.5 million lives, Canara HSBC Life Insurance demonstrates a wide market presence and strong customer trust. Its continued expansion and service innovation position it as a key player in India’s growing life insurance sector.
Should You Consider Applying?
According to SBI Securities, Canara HSBC Life Insurance is strategically positioned to capitalize on its strong promoter backing, extensive bancassurance network, and diverse product offerings to maintain steady growth.
The company’s key strengths include growing contributions from bancassurance partners, improving policy persistency rates, and consistent premium growth. These factors provide a solid foundation for sustainable long-term profitability. Moreover, Canara HSBC Life’s emphasis on technology adoption and product innovation further boosts its scalability and enhances customer engagement.
At the upper end of the price band, the company’s valuation stands at a price-to-embedded-value (P/EV) multiple of 1.6x for Q1 FY26, indicating a reasonable market price relative to its intrinsic value.
SBI Securities also forecasts that life insurance premiums for bank-led insurers will expand at a CAGR of 22% to 25% between FY25 and FY28, reaching between Rs 5.4 lakh crore and Rs 5.7 lakh crore. With this strong industry growth outlook, Canara HSBC Life Insurance is well-positioned to benefit significantly from the expanding market opportunity.
Lead Managers for the Canara HSBC Life IPO
The book-running lead managers overseeing this IPO are SBI Capital Markets, BNP Paribas, HSBC Securities and Capital Markets (India), JM Financial, and Motilal Oswal Investment Advisors.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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