Upcoming IPO: Canara HSBC Life Insurance Files DRHP With SEBI for IPO

Backed by Canara Bank and one of the leading Indian life insurance companies, Canara HSBC Life Insurance, has filed the DRHP (Draft Red Herring Prospectus) with SEBI for IPO. 

As per the CRISIL Report, the company ranks amongst India's top five bank-led life insurers (based on the number of lives covered for FY 2024). 

IPO Structure and Details

• As per the DRHP, the IPO consist entirely of an offer for sale (OFS) component worth 237,500,000 Equity Shares. 
• The equity shares are proposed to be listed on both the BSE and NSE.
• The book-running lead managers for the IPO are SBI Capital Markets Limited, BNP Paribas, HSBC Securities & Capital Markets (India) Private Limited, JM Financial Limited, and Motilal Oswal Investment Advisors Limited. 

Utilisation of Funds

The company will not receive any proceeds from the OFS component. Instead, it will be directed to the selling shareholders, which include Canara Bank, HSBC Insurance (Asia-Pacific) Holdings Limited, and Punjab National Bank.

Financial performance

For the period ended March 31, 2024, the company reported a Profit After Tax (PAT) of ₹113.32 crore, up 1,006.3% from ₹10.24 crore reported on March 31, 2022. Within just two years, it has increased at a CAGR of 232.61%. 

Company Profile 

Canara HSBC Life Insurance offers different life insurance products, including saving, endowment, term (pure protection), retirement, group credit life and protection plans and the Pradhan Mantri Jeevan Jyoti Bima Yojana (“PMJJBY”). 

Currently, their portfolio includes 17 individual products, 7 group products and 2 riders, along with policies under the PMJJBY scheme. 

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