Canara HSBC Life Insurance IPO GMP Hints At Decent Listing - Check Price Band, Peers, Strengths, Risks and Other Details

Canara HSBC Life Insurance IPO GMP: The initial public offering (IPO) of Canara HSBC Life Insurance opened for subscription on October 10. Here’s a look at some key details from Canara HSBC Life Insurance’s red herring prospectus (RHP):

Canara HSBC Life Insurance: Subscription Update

On the first day of subscription, Canara HSBC Life Insurance IPO has been booked 4 per cent so far on the first day of bidding as investors placed bids for 7.35 million shares compared to the 166.71 million shares set aside for subscription.

Canara HSBC Life Insurance IPO has been booked 21 per cent in the employees category as employees of the life insurer bid for 3,26,200 shares compared to 1.55 million shares set aside for them.

Retail individual investors have bid for 6.24 million shares of the public issue compared to 82.58 million shares set aside for the category. Canara HSBC Life Insurance has been booked 8 per cent in the retail investor category.

Non-institutional investors have bid for 7,79,800 shares, compared to the 35.39 million shares set aside for the category. Canara HSBC Life Insurance IPO has been booked at 2 per cent in the NII category.

So far, qualified institutional buyers have not placed bids for any shares compared to the 47.19 million shares set aside for the category.

Canara HSBC Life Insurance IPO GMP

The grey market premium (GMP) for Canara HSBC Life Insurance’s unlisted shares is currently Rs 10, according to multiple websites which track the demand for unlisted shares. Based on the trends in the grey market premium, the life insurance company’s shares can be listed with potential gains of 9.43 per cent at Rs 116 per share on the NSE and BSE.

Canara HSBC Life Insurance IPO: Issue Size, Price Band and Key Dates

Canara HSBC Life Insurance IPO is a book-build issue and consists only of an offer-for-sale component of 237.5 million shares. The life insurance company seeks to raise Rs 2,517.5 crore through its offer-for-sale. Canara HSBC Life Insurance IPO price band has been set at Rs 100 to Rs 106 per share. For retail investors, the minimum lot size to apply is one lot consisting of 140 shares aggregating to a minimum investment of Rs 14,840.

The share allotment status of Canara HSBC Life Insurance IPO is likely to be finalised on October 15. Once the share allotment status is decided, successful bidders will receive the shares in their demat accounts on October 16. Shares of Canara HSBC Life Insurance will tentatively list on the BSE and NSE on October 17.

Canara HSBC Life Insurance: Key Financials

Canara HSBC Life Insurance Co’s total income for the quarter ended June 30, 2025, stood at Rs 42.35 crore. In the June quarter of FY26, Canara HSBC Life Insurance Co’s net profit and net worth stood at Rs 23.41 crore and Rs 1,540.28 crore, respectively.

Canara HSBC Life Insurance Co’s total income decreased by 2.85 per cent to Rs 234.01 crore in FY25 compared to Rs 240.88 crore in FY24. The life insurance company’s net profit for FY25 stood at Rs 116.98 crore, growing by over 3 per cent year-on-year (YoY) compared to Rs 113.32 crore. Canara HSBC Life Insurance Company’s net worth increased by 6.9 per cent to Rs 1516.86 crore against Rs 1418.88 crore in the preceding fiscal.

Canara HSBC Life Insurance: Business Model

Canara HSBC Life Insurance Co is a private life insurer. The company is promoted by Canara Bank and the Hong Kong and Shanghai Banking Corporation Limited (HSBC) group. According to the CRISIL Report(Analysis of Life Insurance Industry in India), the company had the third highest assets under management (AUM) amongst public sector bank promoted life insurers, as of March 31, 2025.

Canara HSBC Life Insurance Co provides a diverse range of life insurance products tailored for both individual and group customers. The company’s offerings include saving and endowment plans, term (pure protection) plans, retirement solutions, group credit life and protection plans and the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). The company’s product portfolio has 20 individual products, seven group products and two optional rider benefits, along with policies under the PMJJBY scheme. The life insurer also provides comprehensive protection, guaranteed income and market-linked growth features.

Canara HSBC Life Insurance: Peers

Canara HSBC Life Insurance has multiple peers and competes with other bank led insurers such as SBI Life Insurance Company Ltd, HDFC Life Insurance Company Limited, ICICI Prudential Life Insurance Company Ltd, Axis Max Life Insurance Company Ltd, Kotak Mahindra Life Insurance Ltd, PNB Metlife India Insurance Company Ltd, India First Life Insurance Company Ltd and Star Union Dai-Ichi Life Insurance Company Ltd.

The company also competes with non-bank led insurance providers such as Life Insurance Corporation of India, TATA AIA Life Insurance Company Ltd, Bajaj Allianz Life Insurance Company Ltd, Aditya Birla Sunlife Insurance Company Ltd and Reliance Nippon Life Insurance Company Ltd. Pension funds, mutual fund companies, reinsurance companies, banks, and other financial services providers are also among the company’s competitors. Other potential competitors include commercial banks, which are permitted to invest in or form alliances with insurance companies to offer insurance products and services.

Canara HSBC Life Insurance IPO: Risks and Strengths

Here’s a look at some of the key risks related to Canara HSBC Life Insurance’s business, according to the company’s RHP:

• The life insurance company mentioned in its RHP that the termination of its bancassurance arrangement or a decline in the performance standards of our bancassurance partners may have a material adverse effect on its business, results of operations and financial condition.

• Canara HSBC Life Insurance Co said that the adverse variation in persistency metrics or adverse persistency metrics as well as concentrated surrenders by customers can have a material effect on its financial condition.

• The life insurance company added that it is subject to periodic inspections by the Insurance Regulatory and Development Authority (IRDAI) and non-compliance with the IRDAI’s observations could subject the company to penal action which could affect its business.

Here’s a look at some of the key strengths of Canara HSBC Life Insurance according to the company’s RHP:

• Canara HSBC Life Insurance has an established parentage and claims to be a trusted brand, amplifying its customer attraction.

• The life insurance company claims that it has a diversified product portfolio and has a focus on customer centricity, enabling growth across business cycles.

• Canara HSBC Life Insurance Co claims to have a technology integrated business platform with strong focus on automation and digital analytics leading to a prudent risk management framework.

Canara HSBC Life Insurance IPO: Objective

Canara HSBC Life Insurance Co Ltd seeks to achieve the benefits of listing its shares on the stock exchanges and expects the listing of its equity shares to enhance its visibility and brand image and provide liquidity for its shares.