About Canara HSBC Life Insurance Company Limited - Mainboard IPO
Canara HSBC Life Insurance Company Limited is India’s leading private life insurance company, incorporated in 2007. It’s a joint venture between Canara Bank (51% stake), HSBC Insurance (Asia-Pacific) Holdings Limited (26% stake), and Punjab National Bank as an investor. The company has built its reputation as one of the fastest-growing bancassurance-led insurers in India, offering comprehensive life insurance solutions to both individual and group customers.
As of March 2025, Canara HSBC Life ranks third in individual weighted premium income growth among bank-led insurers and has the third-largest Assets Under Management (AUM) among public sector bank-promoted life insurers. The company operates through an extensive multi-channel distribution network spanning 15,700+ bank branches across India.
READ FULL DRHP HERE: |SEBI DRHP CANARA HSBC|
IPO Details
Key Information
Details Information
IPO Price Band -₹100 - ₹106 per share
Minimum Lot Size -140 shares (about ₹14,840 at highest price)
Issue Size- ₹2,517.50 crore (100% Offer for Sale - OFS)
Face Value- ₹10 per share
Stock Exchanges- BSE and NSE (Mainboard IPO)
Registrar- KFin Technologies Limited CLICK HERE
Book-running Managers -BofA Securities, ICICI Securities, HSBC Securities, JM Financial, SBI Capital Markets
IPO Timeline (Important Dates)
| Event | Date |
|---|---|
| Anchor Investor Bidding | October 9, 2025 |
| IPO Opens | October 10, 2025 |
| IPO Closes | October 14, 2025 |
| UPI Mandate Deadline | October 14, 2025 (5 PM) |
| Allotment Date | October 15, 2025 |
| Refunds/Unsuccessful Bids | October 16, 2025 |
| Shares in Demat Account | October 16, 2025 |
| Listing Date | October 17, 2025 |
What Is the Money Used For?
All ₹2,517.50 crore proceeds go to existing shareholders - Canara Bank, HSBC Insurance, and Punjab National Bank selling 23.75 crore shares (15% of total stake). The primary objective is to achieve listing benefits including enhanced visibility, brand recognition, and liquidity for existing shareholders.
Key Financials (as per Company Reports and SEBI Filings)
| Financial Metric | FY23 (₹ Cr) | FY24 (₹ Cr) | FY25 (₹ Cr) |
|---|---|---|---|
| Total Revenue | 2,615.89 | 2,408.77 | 2,340.11 |
| Total Expenditure | 1,704.95 | 1,275.60 | 1,170.30 |
| Profit After Tax (PAT) | 911.94 | 1,133.17 | 1,169.81 |
| EBITDA | 2,582.54 | 1,528.11 | 1,532.13 |
| Total Assets | 30,548.89 | 37,815.80 | 41,852.09 |
| Total Liabilities | 30,548.89 | 37,815.80 | 41,852.09 |
| Shareholders’ Equity | 1,321.64 | 1,386.43 | 1,469.05 |
Financial Analysis Summary
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Revenue StabiliTotal revenue remained relatively stable around ₹2,340-2,616 crore over three years.
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PAT consistently above ₹900 crore with margins ranging from 47-74%.
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Consistently high EBITDA margins above 60%, indicating operational efficiency.
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PAT grew 28% from FY23 to FY25 despite revenue fluctuations.
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Consistently high ROE above 30%, indicating excellent returns to shareholders.
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Return on Net Worth around 7-8% showing consistent performance.
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Earnings per share increased from ₹0.96 to ₹1.23 showing per-share value creation.
Points of Caution:
- 100% OFS: Company gets no funds for expansion, purely exit for existing shareholders
- Revenue decline: Total revenue showing declining trend from FY23 to FY25
- Margin compression: PAT and EBITDA margins declining over recent years
- Competition: Intense competition from private insurers and new digital players
- Bancassurance dependency: Heavy reliance on bank channel distribution
- Regulatory risks: Insurance sector subject to strict IRDAI regulations
- Market volatility: Insurance business affected by equity market performance
- Economic sensitivity: Premium collections affected by economic cycles
Why Some Investors Like This Mainboard IPO
- Pure insurance play: Direct exposure to India’s growing life insurance sector.
- Strong brand equity: Canara Bank and HSBC brand recognition and trust.
- Distribution advantage: Unmatched reach through extensive bank network.
- Market opportunity: India’s low insurance penetration offers long-term growth.
- Consistent performer: Track record of profitability and market share growth.
- Reasonable valuation: Attractive pricing compared to pure-play insurance companies.
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.