Upcoming IPO: SEBI Gave Green Light to Canara HSBC Life Insurance IPO

Private life insurer Canara HSBC Life Insurance Company, a subsidiary of Canara Bank, has received the final observations from the Securities and Exchange Board of India (SEBI), enabling it to file an updated Draft Red Herring Prospectus (UDRHP) for its upcoming initial public offering (IPO).

The company has updated its draft prospectus by incorporating SEBI’s observations to ensure full compliance with regulatory requirements. This is a key step before submitting the final Red Herring Prospectus (RHP) to the Registrar of Companies.

Canara HSBC Life IPO Structure: 100% Offer for Sale

Canara HSBC Life IPO, initially filed on April 28, is structured as a pure offer-for-sale (OFS) of up to 23.75 crore equity shares, with no fresh issue component. This means that the company itself will not raise new capital from the issue.

The OFS will be conducted by the company’s promoters and a key investor:

• Canara Bank (Promoter) – holding 51%
• HSBC Insurance (Asia-Pacific) Holdings (Promoter) – holding 26%
• Punjab National Bank (PNB) (Investor) – holding 23%

The entire proceeds from the share sale (net of offer-related expenses) will be distributed to these selling shareholders.

Also Read: Upcoming IPO: SEBI Clears New IPO Including Hero Motors, Pine Labs and 5 More

Lead Managers to the Issue

The IPO is being managed by a syndicate of book running lead managers (BRLMs), including:

• SBI Capital Markets
• BNP Paribas
• HSBC Securities & Capital Markets (India)
• JM Financial
• Motilal Oswal Investment Advisors

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.