Why this multibagger Jhunjhunwala stock in focus today; RJ owns Rs 1,500 crore stake in it

Canara Bank shares: State-run multibagger Canara Bank shares will be in focus on Tuesday after the PSU lender has received observations from the capital markets regulator SEBI to launch IPOs for its two subsidiaries, including asset management company (AMC) and life insurance business. This will unlock the value for the PSU lender.

"Canara HSBC Life Insurance Company, a subsidiary of Canara Bank has received communication from Securities and Exchange Board of India (SEBI) vide letter dated 15.09.2025 on final observations and for filing Updated Red Herring Prospectus (UDRHP)," said Canara Bank in an exchange filing on Monday, September 15.

"The stock exchanges are hereby informed that Canara Robeco Asset Management Company, a subsidiary of Canara Bank has received communication from Securities and Exchange Board of India (SEBI) vide letter dated 10.09.2025, received on 11.09.2025 on final observations and for filing Red Herring Prospectus (RHP)," said the lender in another filing on September 11.

Canara HSBC Life Insurance Company is a private player in the Indian life insurance sector promoted by Canara Bank and HSBC Insurance (Asia-Pacific) Holdings, while Canara Robeco Asset Management Company is India’s second oldest AMC, promoted by the PSU bank and ORIX Corporation Europe NV.

Shares of Canara Bank settled at Rs 112.50 on Monday, commanding a total market capitalization of 1.02 lakh crore. The stock is marginally lower from its 52-week high at Rs 119.30 hit in June 2025. The stock has jumped over 43 per cent from its 52-week low at Rs 78.58, hit in March 2025, hit six month ago. The stock has delivered a 475 per cent increase in the last five years.

Government of India, the promoter of Canara Bank, owned 62.93 per cent stake in it as of June 30, 2025. Mutual funds and insurance companies including LIC own 10.47 per cent stake in the lender. Rekha Jhunjhunwala, wife of late Rakesh Jhunjhunwala, owned 1.46 per cent stake, or 13,24,43,000 equity shares, in Canara Bank, valued at Rs 1,490 crore.

Among the brokerage firms, Antique Stock Broking has a 'buy' rating on Canara Bank with a target price of Rs 140. Motilal Oswal Financial Services also has the same rating with a target price of Rs 135. Emkay Global Financial Services also has ascribed it a 'buy' tag with a target price of Rs 120 apiece.