Canara HSBC Life Insurance files DRHP with SEBI to launch IPO

Canara HSBC Life Insurance Company, a Indian life insurance entity, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The offering is entirely constitutes an offer for sale (OFS) of up to 237,500,000 equity shares with a face value of Rs 10 each. This includes participation from Canara Bank, HSBC Insurance (Asia-Pacific) Holdings, and Punjab National Bank as selling shareholders.

The company, established in 2007, has grown significantly under the promotion of Canara Bank and HSBC Insurance. As of March 31, 2024, it ranks third in assets under management (AUM) among life insurers promoted by public sector banks in India. It also holds a top-five position among bank-led life insurers by the number of lives covered for Fiscal 2024. This growth underscores its expanding influence in the insurance sector.

Financially, Canara HSBC Life Insurance has demonstrated robust growth. Its profit after tax surged at a compound annual growth rate (CAGR) of 232.61%, climbing from ₹102.43 million in Fiscal 2022 to ₹1,133.17 million in Fiscal 2024. This remarkable increase highlights the company's successful strategies in product expansion and market penetration, further evidenced by an improving Annualised Premium Equivalent (APE). The company plans to list its equity shares on the BSE and NSE.

The IPO is managed by several leading financial institutions serving as book running lead managers (BRLMs) including SBI Capital Markets, BNP Paribas, HSBC Securities & Capital Markets (India), JM Financial and Motilal Oswal Investment Advisors. Their involvement is indicative of the substantial interest and anticipation surrounding this public offering. KFin Technologies is the registrar to the issue.

With a compelling growth narrative and strong management backing, Canara HSBC Life Insurance is poised to attract significant attention as it steps into the public market through this IPO. The substantial equity sale by major shareholders underscores a strategic move to optimise shareholder value while enhancing market presence.