Canara HSBC Life Insurance Company Limited is launching its Initial Public Offering (IPO) to raise funds through a book-built offer. The IPO comprises a pure offer for the sale of 23.75 crore equity shares aggregating up to Rs. 2,517.50 crore. There is no fresh issue component in this IPO.
The IPO opens for subscription on October 10, 2025, and closes on October 14, 2025. The shares will be listed on NSE and BSE on Friday, October 17, 2025. Here’s everything you need to know.
GMP of Canara HSBC Life Insurance Company Limited IPO
As of October 9, 2025, the shares of Canara HSBC Life Insurance Company Limited in the grey market were trading at a 9.43 percent premium. The shares in the Grey Market traded at Rs. 116. This gives it a premium of Rs. 10 per share over the cap price of Rs. 106.
Overview of Canara HSBC Life Insurance Company Limited
Canara HSBC Life Insurance Company Limited was incorporated in 2007 and is a private life insurer jointly promoted by Canara Bank and HSBC Insurance (Asia-Pacific) Holdings Limited. The company offers a range of life insurance, savings, and pension plans designed to meet the financial protection needs of individuals and groups across India.
The company’s business covers individual insurance plans like savings, term, and endowment policies, along with group protection and pension solutions. The company also participates in government programs such as the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). Between 2021 and 2025, it ranked third among bank-led insurers in individual weighted premium income.
Canara HSBC Life Insurance mainly distributes its products through bancassurance, brokers, and digital platforms. Its strong partnership with Canara Bank and other regional banks provides access to more than 15,700 branches and around 117 million customers nationwide through 9,849 branches.
Promoters of Canara HSBC Life Insurance Company Limited
Canara HSBC Life Insurance Company Limited’s promoters are Canara Bank and HSBC Insurance (Asia-Pacific) Holdings Limited. Canara Bank is the holding company, while HSBC Insurance is a promoter, combining strong domestic and global expertise in banking and insurance.
Selling Shareholders of Canara HSBC Life Insurance Company Limited
The IPO includes an offer for sale by Canara Bank, HSBC Insurance (Asia-Pacific) Holdings Limited, and Punjab National Bank. Canara Bank is selling 13.78 crore shares, reducing its stake post-issue.
Additionally, HSBC Insurance (Asia-Pacific) Holdings is offloading 4.75 lakh shares. Punjab National Bank is divesting 9.5 crore shares as an investor shareholder. The proceeds will go entirely to these selling shareholders
Lead Managers of Canara HSBC Life Insurance Company Limited IPO
The Book Running Lead Managers are SBI Capital Markets Limited, BNP Paribas, JM Financial Limited, Motilal Oswal Investment Advisors Limited, and HSBC Securities and Capital Markets (India) Private Limited. Kfin Technologies Limited is acting as the registrar for the IPO.
Objectives of the IPO Offer
The IPO is purely an Offer for Sale, meaning no fresh capital is raised by the company. The proceeds will benefit the selling shareholders directly. The company will not receive any funds from the issue.
The primary objective is to increase public shareholding and enhance market visibility. It allows existing shareholders to partially exit their investments. The listing will improve corporate governance and transparency.
Financial Analysis of Canara HSBC Life Insurance Company Limited
Canara HSBC Life Insurance Company Limited’s total income has decreased from Rs. 240.88 crore in FY24 to Rs. 234.01 crore in FY25, which is a drop of 2.85 percent. The net profit of the company has increased by 3.22 percent, from Rs. 113.32 crore in FY24 to Rs. 116.98 crore in FY25.
Canara HSBC Life Insurance Company Limited’s revenue and profit have grown at a CAGR of -5.42 percent and 13.26 percent, respectively, over the last two years. The company has reported a total income of Rs. 42.35 crore and a profit after tax of Rs. 23.41 crore in the June Quarter 2025.
Canara HSBC Life Insurance Company Limited Vs Peers
Canara HSBC Life Insurance Company Limited reported revenue from operations of Rs. 8,027.46 crore in FY2025 with an EPS of Rs. 1.23 and RoNW of 7.97 percent. In comparison, SBI Life Insurance Company Limited earned Rs. 84,984.63 crore with an EPS of Rs. 24.09 and a RoNW of 15.13 percent.
Similarly, HDFC Life Insurance Company Limited reported Rs. 71,075.14 crore in revenue, Rs. 8.41 EPS, and a RoNW of 11.75 percent. ICICI Prudential Life Insurance Company Limited reported Rs. 48,950.71 crore in revenue, Rs. 8.21 EPS, and a RoNW of 10.34 percent.
The company’s net asset value per share is Rs. 15.97, compared to Rs. 169.49 for SBI Life Insurance Company Limited, Rs. 75.03 for HDFC Life Insurance Company Limited, and Rs. 82.47 for ICICI Prudential Life Insurance Company Limited.
Strengths of Canara HSBC Life Insurance Company Limited
- Strong brand association with Canara Bank, HSBC, and Punjab National Bank enhances credibility.
- A wide bancassurance network supports diversified distribution and customer reach.
- Consistent profitability for thirteen years demonstrates financial resilience and discipline.
- High claim settlement ratio of 99.38 percent strengthens customer trust.
- Robust solvency ratio and efficient expense management ensure business stability.
Weaknesses of Canara HSBC Life Insurance Company Limited
- High dependence on bancassurance channels for business generation.
- Intense competition from private and public life insurers in India.
- Limited international presence compared to global insurance players.
- Sensitivity to economic changes affecting insurance premium growth.
- Dependence on regulatory stability and compliance with IRDAI norms.
Conclusion
Canara HSBC Life Insurance Company Limited’s IPO offers investors an opportunity to invest in a financially strong, bank-backed life insurer. Its proven profitability, high solvency, and customer trust make it an attractive option. Investors should consider its dependence on bancassurance and industry competition while evaluating the offer. The IPO marks a major milestone in India’s insurance sector, combining domestic strength with global expertise.
Written By – Nikhil Naik
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