Canara HSBC Life IPO Subscribed 14% on Second Day of Bidding

The initial public offering of Canara HSBC Life Insurance Company has seen a 14% subscription on its second day of bidding, October 13. The Rs 2,517-crore IPO is garnering interest across retail and employee segments, while institutional participation remains modest.

By midday, the IPO received bids for over 2.31 crore shares, against the total offer size of 16.67 crore shares listed on the NSE. Retail investors have subscribed to 21% of their reserved portion, whereas employees have shown robust interest, subscribing 88% of their allocated shares.

Non-Institutional Investors (NII) and Qualified Institutional Buyers (QIB) have picked up 8% and 3% of their reserved portions respectively, reflecting cautious participation from larger institutional segments.

IPO Snapshot

• Total Offer Size: Rs 2,517.50 crore
• Shares on Offer: 23.75 crore (all via Offer for Sale)
• Price Band: ₹100–106 per share
• Minimum Lot Size: 140 shares (₹14,840 per lot)
• IPO Closing Date: October 14
• Expected Allotment Date: October 15
• Listing Date: October 17 on BSE & NSE

The IPO is structured purely as an Offer for Sale (OFS) by promoters Canara Bank, HSBC Insurance (Asia-Pacific) Holdings, and Punjab National Bank. Since there is no fresh issue, none of the proceeds will go directly to the company.

Anchor Investors

Ahead of public bidding, Canara HSBC Life raised Rs 750.3 crore via anchor book on October 9. Participation included global investors such as Ashoka WhiteOak, Allianz Global, Pictet, Amundi Funds, Marshall Wace Investment, Societe Generale, and Susquehanna Pacific.

Domestic institutional investors were also active, with eight mutual fund houses acquiring 4.26 crore equity shares valued at Rs 452.55 crore, signaling a solid anchor demand for the IPO.

Key Details to Note

• The IPO offers a chance for investors to enter India’s growing life insurance sector, which has room for expansion given low penetration rates.
• With the Offer for Sale structure, promoters are divesting part of their holdings, while the company itself does not receive fresh capital from this issue.

Summary

On stock market today, the Canara HSBC Life IPO reflects moderate investor interest, with strong subscription from employees and retail investors. The offering is poised to debut on BSE and NSE on October 17, marking a key milestone for the private life insurance company in India.