Canara HSBC Life Insurance to launch IPO on October 10
What's the story
Canara HSBC Life Insurance Company will open its first-ever public offer (IPO) on October 10. The IPO will be a complete offer-for-sale (OFS) of 23.75 crore shares and will close on October 14. A portion of the shares from the IPO will be reserved for anchor investors one day before the launch. The price band for this public offer has been approved by regulators and will be announced shortly.
Stake details
Promoter stake sales in the OFS
The OFS will see promoters Canara Bank and HSBC Insurance selling part of their stakes. Investor and selling shareholder PNB will also be a part of this process. Canara HSBC Life Insurance's individual weighted premium income (WPI) collected has grown at the third highest rate among bank-led insurers between FY2022 and FY2025, according to a Crisil report.
Financial performance
Steady growth in annualized premium equivalent
Canara HSBC Life Insurance has seen a steady growth in its annualized premium equivalent (APE) over the years. The company's profit after tax has grown at a CAGR of 13.26% from ₹91.2 crore in FY2023 to ₹117 crore in FY2025. The embedded value also grew from ₹4,272 crore at the end of FY23 to ₹6,111 crore as of FY25.
Solvency ratio
Solvency ratio and life coverage
As of June 2025, Canara HSBC Life Insurance had a solvency ratio of 200.42%, well above the regulatory requirement of 150%. The company has covered over 10.51 million lives so far, highlighting its wide reach and the trust customers place in it for their life insurance needs. SBI Capital Markets, BNP Paribas, HSBC Securities & Capital Markets (India), JM Financial, and Motilal Oswal Investment Advisors are the book running lead managers to the issue.