With its current shareholders seeking to sell their position, Canara HSBC Life Insurance Company, a subsidiary of state-owned Canara Bank, has filed for an initial public offering (IPO).

The insurance business, which oversees assets worth over Rs.40,000 crore, stated that it will not be issuing new shares but did not specify the scope or date of the IPO.

In Canara HSBC's initial public offering (IPO), up to 23.75 crore shares would be sold by Canara Bank, HSBC Insurance, and Punjab National Bank.

The company will not get any revenues from the offering since it is an OFS.

Through the listing process, Canara Bank will sell up to 13.77 crore shares, and HSBC Insurance (Asia-Pacific) Holdings will sell 0.47 crore shares. Up to 9.5 crore shares are planned for sale by Punjab National Bank.

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

 

The lead managers of the deal are believed to be Motilal Oswal Investment Advisors, JM Financial, HSBC Securities & Capital Markets India, PNB Paribas, and SBI Capital Markets.

According to its draft prospectus, Canara HSBC Life Insurance Company declared a profit after tax of Rs.113 crore for the fiscal year that ended in March 2024, which was 24.3 percent more than the previous year. However, revenue decreased by one percent within the same time frame. Fiscal 2025 results have not yet been released.

After Canara Robeco Asset Management Company filed last week, this is the second initial public offering (IPO) by a company backed by Canara Bank in recent memory.

The draft documents were submitted at a time when the equities market's volatility was threatening to slow down the IPO market.

To prevent poor demand or unsuccessful listings, corporations are being forced to reevaluate their IPO aspirations at a time when global market volatility is increasing due to the U.S.'s vacillating stance on tariffs.

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In terms of IPO proceeds in 2024, India ranked as the second-largest market globally. However, according to data published by LSEG, listings have decreased by over 15  percent this year.