Canara HSBC Life Insurance Set to Raise $300M in October IPO
Canara HSBC Life Insurance, a joint venture between Canara Bank and HSBC Insurance Holdings Limited, is set to launch an Initial Public Offering (IPO) in early October. The IPO aims to raise up to $300 million (Rs26.6bn) and has received approval to sell up to 237.5 million shares.
The IPO, coordinated by local branches of HSBC Holdings, BNP Paribas, SBI Capital Markets, JM Financial, and Motilal Oswal Investment Advisors, will see Canara Bank divest its 137.8 million shares. HSBC Insurance and PNC Bank will sell 4.7 million and 95 million shares, respectively. Investor roadshows are already underway ahead of the IPO.
Canara HSBC Life Insurance recorded a profit of Rs849m in the nine months ending 31 December 2024. The company is required to comply with government exemptions and decrease its stake to 30% by the end of October 2029. Canara Bank has previously received approval to divest its stakes in life insurance and mutual fund businesses via IPOs, including reducing its holdings in Canara HSBC Life Insurance Company by 14.5%.
The IPO of Canara HSBC Life Insurance is expected to strengthen the company's financial position and provide an opportunity for public investment. The successful completion of the IPO will also help the company meet the government's stake reduction requirement by the end of October 2029.
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