Canara HSBC Life Insurance shares make muted stock market debut; stock list at issue price

Shares of Canara HSBC Life Insurance Company made a muted stock market debut on Friday, October 17 as the life insurance company settled at Rs 106 on both BSE and NSE, which is the issue price, suggesting no premium or discount for the investors.

Listing of Canara HSBC Life Insurance Company has been slightly below the expected lines. Ahead of its debut, the stock saw some recovery in its grey market premium (GMP), which rose to Rs 2-3 in the unofficial market, suggesting a flat listing pop of 2-3 per cent for the investors.

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 firm were largely positive on it, suggesting to subscribe to it on a long-term basis. JM Financial, SBI Capital Markets, 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 was appointed as the registrar of the issue.