Canara HSBC Life Insurance IPO kicks-off today: Should you subscribe to this issue?

The initial public offering (IPO) of Canara HSBC Life Insurance Company (Canara HSBC Life) opens for bidding today, that is on Friday, October 10. The life insurance player is selling its shares in the range of Rs 100-106 apiece for which investors can apply for a minimum of 140 equity shares and its multiples thereafter. The issue will close for subscription on Tuesday, October 14.

Canara HSBC Life Insurance is looking to raise a total of Rs 2,517.50 crore via IPO, which is entirely an offer-for-sale (OFS) of up to 23.75 crore equity shares. The company will not receive any proceeds from the issue. Last heard, Canara HSBC Life was commanding a grey market premium (GMP) of Rs 10 apiece, suggesting nearly more than 9 per cent gains for investors.

Incorporated in 2007, New Delhi-based Canara HSBC Life Insurance Company is a private life insurance company in India, jointly promoted by Canara Bank and HSBC Insurance (Asia-Pacific) Holdings. It provides individual life insurance, group insurance solutions, retirement & pension products and more.

Canara HSBC Life Insurance raised Rs 750.32 crore from 33 anchor investors as it allocated 7.08 crore equity shares at Rs 106 apiece. Its anchor book included names like Ashoka Whiteoak, ICICI Prudential, DPS Mutual Funds, Mirae Asset Mutual Fund, Amundi Funds, Marshall Wace Investment, Matthews Asia Funds, Whiteoak Capital and more.

Canara HSBC Life Insurance offers a portfolio comprising 20 individual products, 7 group products, and 2 optional riders, along with policies under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). It recorded the third-highest individual weighted premium income (WPI) among bank-led insurers between FY21-23.

For the three-months ended on June 30, 2025, Canara HSBC Life Insurance reported a net profit of Rs 23.41 crore with a revenue of Rs 42.35 crore. The company clocked a net profit of Rs 116.98 crore with a revenue of Rs 234.01 crore for the financial year 2024-25. The company shall command a total market capitalization more than Rs 1,070 crore.

Canara HSBC Life Insurance has reserved 15.50 lakh equity shares for its eligible employees, who will get a discount of Rs 10 apiece. Of the net issue, 50 per cent shares are reserved for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent of allocation. The quota for retail investors has been fixed at 35 per cent in this IPO.

SBI Capital Markets, JM Financial, HSBC Securities and Capital Markets (India), BNP Paribas and Motilal Oswal Investment Advisors are the book running lead managers for Canara HSBC Life Insurance and Kfin Technologies is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on Friday, October 17. Here's what a host of brokerage firms say about the IPO:
 

ICICIDirect Research
Rating: Subscribe
Strategy focussing on well-diversified product portfolio and strong distribution bodes well, high dependence on bancassurance and relatively lower VNB margins compared to peers is expected to keep valuation multiples at a discount to peers, said ICICI Direct.

"At the upper price band, the company is valued at 1.6 times Q1FY26 EV. At relatively lower valuation, downside risk remains limited, while upside potential seems to be gradual. Thus, we assign 'subscribe' for listing gains," it added. It has cited concentration risk of heavy reliance on bancassurance as a major risk for the issue.
 

Arihant Capital Markets
Rating: Subscribe for long-term
Canara HSBC is well placed to benefit from India’s growing life insurance market, supported by strong parentage from Canara Bank and HSBC, a wide bancassurance network, and an expanding digital and broker base. It has shown steady growth in premiums and profitability, with PAT rising at a 13 per cent CAGR from FY23 to FY25 and embedded value increasing to Rs 63,526 crore as of June 2025, said Arihant Capital.

"While the company enjoys wide bancassurance reach through 15,700+ branches, its branch productivity in terms of premium and in policies trails peers. However, the strong network, trusted partners, and lower operating costs from shared infrastructure provide a solid foundation for improving efficiency and driving future growth," it said with a 'subscribe for long-term.
 

Ventura Securities
Rating: Subscribe
Canara HSBC Life Insurance intends to expand its product portfolio, deepen penetration through bancassurance, and scale up digital platforms. With strong promoters, rising profitability, and a trusted brand name, Canara HSBC Life Insurance is well-positioned to capitalize on India’s growing life insurance market, said Ventura Securities.

"Looking ahead, the company intends to expand its product portfolio, deepen penetration through bancassurance, and scale up digital platforms. With strong promoters, rising profitability, and a trusted brand name, Canara HSBC Life Insurance is well-positioned to capitalize on India’s growing life insurance market," it said with a 'subscribe' rating.
 

BP Equities
Rating: Subscribe
"Canara HSBC demonstrates a broad customer base and deep market reach, underscoring the trust and confidence policyholders place in its life insurance offerings, said BP Equities. The issue is currently valued at a P/EV of 1.6 times (FY25), which appears attractive in comparison to industry peers, indicating potential undervaluation as growth and profitability sustain," it said with a subscribe' rating.