According to a CNBC-TV18 report, the Insurance Regulatory and Development Authority of India has granted approval for Canara HSBC Life Insurance Company's initial public offering, paving the way for a September to October 2025 market debut.
This regulatory clearance represents a crucial milestone for the joint venture between Canara Bank and HSBC Insurance, enabling the company to proceed with its public listing plans.
Following IRDAI's approval, Canara HSBC Life Insurance is now positioned to launch its IPO during the September to October 2025 window. The regulatory nod addresses sector-specific requirements for life insurance companies seeking public listing, complementing the draft red herring prospectus already filed with SEBI in April 2025.
The company had previously filed preliminary papers with SEBI for an offer for sale of up to 23.75 crore equity shares of ₹10 face value each, with no fresh issue component planned.
According to reports, the selling shareholders could look to raise between ₹3,875 crore and ₹4,075 crore through the Canara HSBC Life Insurance IPO. This represents a significant increase from earlier estimates that had valued the potential offering at around ₹16,500 crore based on embedded value calculations.
The 3 selling shareholders include Canara Bank offering up to 13.77 crore shares, Punjab National Bank divesting 9.5 crore shares, and HSBC Insurance (Asia-Pacific) Holdings Limited selling 47.5 lakh shares.
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Canara Bank currently holds a 51% stake in the life insurance company, while HSBC Insurance (Asia-Pacific) Holdings Limited owns 26%, and Punjab National Bank maintains a 23% shareholding. The IPO will enable all three promoter entities to partially monetise their investments while maintaining strategic involvement in the company.
Post IPO, Canara HSBC Life Insurance will no longer remain a subsidiary of Canara Bank, marking a significant corporate restructuring for the joint venture.
SBI Capital Markets, BNP Paribas, HSBC Securities & Capital Markets, JM Financial, and Motilal Oswal Investment Advisors serve as book-running lead managers for the issue. The shares will be listed on both BSE and NSE platforms.
IRDAI's approval for Canara HSBC Life Insurance IPO clears the final regulatory hurdle for the September-October 2025 launch. With selling shareholders targeting ₹3,875-4,075 crore fundraise, this offer for sale represents one of the significant insurance sector listings planned for 2025, enabling partial exit for promoter banks while providing public market access to investors.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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.
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Published on: Jul 24, 2025, 2:50 PM IST
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