Canara HSBC Life Insurance IPO to make market debut today; check latest GMP before listing

Shares of Canara HSBC Life Insurance Company are set to make its stock market debut on Friday, October 17 as the life insurance company is likely to deliver muted listing pop to the investors, if one goes by the latest signal from the unofficial market. The company has seen a decent rebound in its grey market premium (GMP) even after a muted bidding process.

Ahead of its listing, Canara HSBC Life Insurance Company has seen some recovery in its grey market premium (GMP), even after mixed bidding. Last heard, the company was commanding a GMP of Rs 2-3 in the unofficial market, suggesting a flat listing pop of 2-3 per cent for the investors. There was no GMP for the issue, when it closed for bidding.

The IPO of Canara HSBC Life Insurance Company was open for bidding between October 10 and October 14. It had offered its shares in the price band of Rs 100-106 per share with a lot size of 140 shares. The company raised a total of Rs 2,517.50crore via IPO, which was entirely a fresh share sale of up to 23.75 crore equity shares.

The issue was overall subscribed only 2.29 times fetching nearly 1.75 lakh applications, fetching bids for over Rs 4,050 crore. The allocation for the qualified institutional bidders (QIBs) was subscribed 7.05 times, while employees allocation was booked 2.06 times. The portions for non-institutional investors' (NIIs) and retail investors were undersubscribed at 33 per cent and 42 per cent, respectively.

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.

Brokerage firms, those tracking the issue, were largely positive on it, suggesting to subscribe to it, SBI Capital Markets, JM Financial, HSBC Securities and Capital Markets (India), BNP Paribas and Motilal Oswal Investment Advisors were the book running lead managers for Canara HSBC Life Insurance and Kfin Technologies served the registrar of the issue.