Canara HSBC Life Insurance Company Limited has announced its initial public offering (IPO), providing investors an opportunity to invest in one of India’s leading private life insurance companies. The IPO is a book-built issue worth ₹2,517.50 crore, entirely structured as an offer for sale of 23.75 crore shares. Being an offer for sale, the proceeds from the IPO will go to the selling shareholders, while the company itself will not receive funds directly for expansion.

IPO Overview

The Canara HSBC Life IPO opens for subscription on October 10, 2025, and will close on October 14, 2025. The allotment of shares is expected on October 15, 2025, followed by tentative listing on BSE and NSE on October 17, 2025. This well-defined schedule allows investors to plan their subscription strategy efficiently.

The IPO offers equity shares at a price band of ₹100 to ₹106 per share, providing investors with a clear view of investment requirements. The minimum lot size for retail investors is 140 shares, which translates to a minimum investment of ₹14,840 at the upper price band. For high-net-worth individual (HNI) investors, the minimum lot size is 1,960 shares (14 lots) at ₹2,07,760, while big institutional investors (bNII) must subscribe with 68 lots or 9,520 shares, amounting to ₹10,09,120.

About Canara HSBC Life Insurance Limited

Canara HSBC Life Insurance is a joint venture between Canara Bank, HSBC Insurance (Asia Pacific) Holdings Limited, and the private equity arm of General Atlantic, combining the trust of a major Indian bank with global insurance expertise. The company provides a wide range of life insurance products, including term insurance, ULIPs, savings plans, and retirement solutions, catering to diverse customer segments across India.

Key highlights of Canara HSBC Life Insurance:

• Strong Distribution Network: Operates through bank branches, direct sales, and broker channels, ensuring broad market reach.

• Product Diversification: Offers innovative insurance and investment-linked products that meet the varying needs of retail and corporate customers.

• Financial Strength: Maintains a strong solvency ratio and demonstrates consistent growth in premiums, reflecting operational stability.

• Customer Trust: Known for reliable claims settlement and customer service, building strong brand equity in the competitive life insurance sector.

IPO Structure and Investment Details

The IPO is entirely an offer for sale, meaning shares will be sold by existing shareholders, and the company will not directly receive capital from this issue. The offer aims to provide liquidity to existing investors while giving new investors a chance to own a stake in a reputed life insurance firm.

Investment details for various categories:

• Retail Individual Investors (RII):

  • Lot size: 140 shares

  • Minimum investment: ₹14,840 at ₹106 per share

• High Net-Worth Individuals (HNI/sNII):

  • Lot size: 14 lots (1,960 shares)

  • Investment: ₹2,07,760 at ₹106 per share

• Big Institutional Investors (bNII):

  • Lot size: 68 lots (9,520 shares)

  • Investment: ₹10,09,120 at ₹106 per share

This tiered structure enables retail, HNI, and institutional investors to participate according to their investment capacity, ensuring wide investor participation.

Application and Allotment Process

Investors can apply for the Canara HSBC Life IPO through:

1. Online Applications: Using trading accounts linked with BSE or NSE via brokers that support IPO subscription.

2. Offline Applications: Submitted through designated banks and brokers, though online application is preferred for faster processing.

3. Payment Mechanism: Payment is required at the time of application for the full amount based on lot size.

The allotment of shares will be finalized on October 15, 2025, after which the shares are expected to list on BSE and NSE on October 17, 2025. Investors should ensure that their applications are submitted accurately and within the deadline to avoid rejection.

Significance of the IPO

The Canara HSBC Life IPO holds strategic importance for the company, shareholders, and the Indian investment landscape:

1. Liquidity for Existing Shareholders: Offers existing investors the opportunity to monetize part of their holdings.

2. Access for Retail Investors: Enables retail investors to gain exposure to a leading life insurance company with strong growth potential.

3. Market Visibility: Listing on BSE and NSE enhances corporate visibility and credibility, potentially attracting long-term institutional interest.

4. Insurance Sector Growth: Provides investors access to India’s expanding life insurance market, which has witnessed strong growth due to rising financial literacy, increasing income levels, and awareness of long-term savings and protection products.

Risks and Considerations

Investors should be mindful of potential risks associated with the IPO:

• Regulatory Risks: Insurance companies operate under the Insurance Regulatory and Development Authority of India (IRDAI), and any changes in regulations can impact operations.

• Market Volatility: Stock prices may fluctuate post-listing, especially in response to economic cycles, interest rate changes, and sector performance.

• Business Risks: Premium collections, claims settlement, and operational efficiency may influence financial performance and investor returns.

• Competition: The life insurance sector is highly competitive, with numerous private and public insurers vying for market share.

Investors should evaluate these factors carefully and align their investment decisions with financial goals and risk appetite.

Market Outlook and Timing

The timing of the Canara HSBC Life IPO is notable given the strong performance of the insurance sector in India, supported by:

• Growing awareness of life insurance products among urban and semi-urban populations.

• Favorable demographics and rising disposable incomes, which increase the demand for savings and protection plans.

• Government initiatives promoting financial inclusion, encouraging insurance penetration in untapped regions.

The price band of ₹100-106 per share ensures accessibility for retail investors, while HNI and institutional participation strengthens investor base and post-listing liquidity.

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