Canara HSBC Life Insurance Company, a prominent player in India’s life insurance sector, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an upcoming initial public offering (IPO). The entire offering will be an Offer for Sale (OFS) of up to 237.5 million equity shares, each with a face value of ₹10. The OFS will see divestment by existing stakeholders—Canara Bank, HSBC Insurance (Asia-Pacific) Holdings, and Punjab National Bank.
Founded in 2007, Canara HSBC Life Insurance has steadily grown under the strategic leadership of Canara Bank and HSBC Insurance. As of March 31, 2024, the company ranked third in assets under management (AUM) among public sector bank-promoted life insurers. Additionally, it secured a place in the top five among bank-led life insurance providers in terms of the number of lives covered during Fiscal Year 2024, underscoring its growing footprint in the insurance space.
On the financial front, the company has posted exceptional performance. Its profit after tax witnessed a staggering compound annual growth rate (CAGR) of 232.61%, soaring from ₹102.43 million in Fiscal 2022 to ₹1,133.17 million in Fiscal 2024. This impressive trajectory is a testament to its successful strategies in product diversification and deeper market penetration. Further strength is reflected in its improving Annualised Premium Equivalent (APE), a key industry metric.
Canara HSBC Life Insurance plans to list its equity shares on both the BSE and NSE. The IPO is being spearheaded by a consortium of reputed Book Running Lead Managers (BRLMs) including SBI Capital Markets, BNP Paribas, HSBC Securities & Capital Markets (India), JM Financial, and Motilal Oswal Investment Advisors. KFin Technologies has been appointed as the registrar to the issue.
With strong financials, a seasoned management team, and the backing of established banking institutions, Canara HSBC Life Insurance is well-positioned to garner investor interest. The significant stake dilution by its key shareholders is a strategic move to enhance shareholder value and reinforce its market presence ahead of listing.
