Canara HSBC Life IPO Gets SEBI Nod, Canara Bank Set To Raise ₹1000 Crore Soon

Mumbai: Canara HSBC Life Insurance Company, a subsidiary of state-run Canara Bank, has received approval from SEBI for its Updated Draft Red Herring Prospectus (UDRHP), paving the way for its upcoming Initial Public Offering (IPO).

The IPO is expected to launch in the October to December 2025 quarter, depending on market conditions. The goal is to raise around Rs 1000 crore through a stake sale.

SEBI’s Final Green Signal for Listing

SEBI had given its final observations on the company’s IPO proposal on September 15 and asked for an updated DRHP, which has now been submitted. This update clears a major regulatory hurdle and allows the company to proceed with the listing process.

The IPO will be purely an Offer for Sale (OFS) of up to 23.75 crore shares. Of this, 13.77 crore shares will be sold by Canara Bank, 47 lakh by HSBC Insurance (Asia-Pacific) Holdings, and 9.5 crore by Punjab National Bank (PNB).

A Three-Way Joint Venture with Strong Growth

Canara HSBC Life Insurance is a joint venture between Canara Bank, HSBC Insurance (Asia-Pacific), and PNB. The company was founded in 2007 and has since become a major player among bank-promoted life insurance companies in India. It ranked second among public sector bank-led life insurers in terms of lives covered in Fiscal 2024, and third in assets under management (AUM).

Strong Financial Performance Drives IPO Plans

According to the DRHP, the company’s financial growth has been impressive. Its profit after tax grew from Rs 10.2 crore in FY22 to Rs 113.3 crore in FY24, showing a CAGR of over 232 percent. It also reported a profit of Rs 84.8 crore in the nine months ending December 2024. The company has focused on expanding its reach, increasing product variety, and improving service to grow its market share.