The primary market continues to buzz this week as Canara HSBC Life Insurance opens for subscription today (October 10). The issue will remain open till October 14.
Here are the key details every investors should know before subscribing –
| Canara HSBC Life Insurance IPO | Key Details |
| Price Band | Rs 100-106 |
| IPO Date | October 10-14 |
| GMP | 9.4% |
| IPO Allotment date | October 15 |
| Listing date | October 17 |
Canara HSBC Life Insurance IPO: Timeline of the issue
The Canara HSBC Life Insurance IPO opens for subscription today, October 10, and will close on Tuesday, October 14. The basis of allotment is expected on Wednesday, October 15, followed by refunds and demat credit on Thursday, October 16. The listing is tentatively scheduled for Friday, October 17 on both NSE and BSE.
The IPO is being managed by a consortium of lead managers including SBI Capital Markets, BNP Paribas, HSBC Securities and Capital Markets (India), JM Financial, and Motilal Oswal Investment Advisors. Kfin Technologies is acting as the registrar for the issue and will handle allotment and refund processes.
Canara HSBC Life Insurance IPO: Grey market premium
As per the latest available updates, the Canara HSBC Life Insurance IPO GMP is at around Rs 10 , indicating that shares were trading near Rs 116 apiece in the unofficial market. This represents a 9.4% premium over the upper end of the price band of Rs 106.
However, it is important to note that grey market trends are sentiment-driven and may not always translate into similar listing-day gains.
Canara HSBC Life Insurance IPO: Price band, lot size and investor quota
The IPO has a price band of Rs 100–106 per share, with a lot size of 140 equity shares. Investors can bid in multiples of 140. As per SEBI guidelines, 50% of the issue is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for retail investors.
Canara HSBC Life Insurance IPO: Entirely an Offer for Sale (OFS)
The Rs 11,607 crore issue is entirely an Offer for Sale (OFS) of 23.75 crore shares. This means that the company won’t receive any proceeds from the IPO. The funds will go to the existing shareholders who are offloading part of their stakes.
In the OFS –
Canara Bank will sell 13.77 crore shares (14.5%)
HSBC Insurance (Asia-Pacific) Holdings will sell 47.5 lakh shares (0.5%)
Punjab National Bank (PNB) will offload 9.5 crore shares (10%)
Post-issue, Canara Bank will hold 36.5%, HSBC will retain 25.5%, and PNB will continue with 10%.
Company overview
Canara HSBC Life Insurance is a joint venture between Canara Bank, HSBC Insurance (Asia-Pacific) Holdings, and Punjab National Bank and was established in 2007. The company primarily sells insurance through its partner banks and has become the third-largest life insurer among public sector banks.