Canara HSBC Life Insurance's IPO opens today: What to know
Canara HSBC Life Insurance's IPO opened today and runs till October 14. The company is looking to raise ₹2,517 crore by selling shares at ₹100-106 each, aiming for an approximately ₹10,000 crore valuation.
Demand was low on day one, but anchor investors have already put in over ₹750 crore.
Low demand on day 1
The IPO saw just 6% subscription on its first day—retail investors showed a bit more interest (9%), while big institutions mostly stayed away.
Still, the early anchor investment signals some confidence from major backers before public bidding started.
Who are the backers?
Founded in 2007, Canara HSBC Life is a joint venture between Canara Bank, HSBC Insurance (Asia Pacific), and Punjab National Bank, with PNB as an investor/selling shareholder.
It focuses on selling life insurance through bank partners across India.
Their offerings include term plans, ULIPs, endowment and retirement plans.
No fresh funds for the company
This IPO is all about existing shareholders cashing out—Canara Bank, HSBC Insurance (Asia-Pacific) Holdings, and Punjab National Bank are selling their shares.
The company itself won't get any new funds from this sale.
Minimum bid is set at 140 shares, with listing expected on October 17, 2024.