Canara HSBC Life Insurance IPO GMP Falls To Zero, Issue Manages To Sail Through On Final Day, Retail, NII Quota Still Lags

Canara HSBC Life Insurance IPO GMP: The initial public offering (IPO) of Canara HSBC Life Insurance Company Ltd managed to sail through on the final day of bidding, securing full subscription. However, the demand from retail and non-institutional investors (NIIs) remained tepid, as these categories are yet to be fully booked. The public issue, which opened for subscription on October 10, is set to close today, October 14.

In the grey market, the Canara HSBC Life Insurance IPO is showing a lackluster performance. According to multiple websites that track such trades, the Canara HSBC Life Insurance IPO's grey market premium (GMP) has declined to Rs 0 per share. Ahead of the opening of its three-day subscription window, Canara HSBC Life Insurance IPO traded with a GMP of Rs 14 on October 7. However, since then the GMP has only been gradually eroding.

Canara HSBC Life Insurance IPO Subscription Status

As of 3:24 PM, the Canara HSBC Life Insurance IPO was subscribed overall 2.15 times the shares on offer.

The qualified institutional investor (QIB) quota was booked 6.63 times, while the NII and retail investor categories saw only 0.31 times and 0.39 times subscriptions, respectively.

The Canara HSBC Life Insurance IPO consists of a total of 23.75 crore shares. Of this, 29.8 per cent has been allocated to anchor investors, while 19.9 per cent is reserved for qualified QIBs excluding anchors. For NIIs, 14.9 per cent of the issue is reserved, and for retail investors, 34.8 per cent of the issue.

Canara HSBC Life Insurance IPO Anchor Investors List

Ahead of the IPO, Canara HSBC Life Insurance raised Rs 750.32 crore from 33 QIBs during the anchor round. As many as eight domestic mutual fund houses participating through 18 different schemes, together accounting for about 60.3 per cent of the anchor allocation.

Among them, HDFC Balanced Advantage Fund emerged as the largest investor, buying nearly 7.50 per cent of the anchor portion worth Rs 56 crore. HDFC Value Fund and HDFC Multi Cap Fund each bought 5 per cent of the allocation, or Rs 37.35 crore. Mirae Asset ELSS Tax Saver Fund also participated, acquiring around 6 per cent of the anchor shares worth Rs 44.55 crore.

Other mutual fund houses such as Tata, ICICI Prudential, Quant, DSP among other also participated.

Canara HSBC Life Insurance IPO Details

Canara HSBC Life Insurance IPO Issue Size: Rs 2,517.50 crore, entirely an offer for sale issue.

Canara HSBC Life Insurance IPO Price Band: Rs 100-106 per share

Canara HSBC Life Insurance IPO Lot Size: 140 shares

Canara HSBC Life Insurance IPO Minimum Investment (Retail): Rs 14,840

Canara HSBC Life Insurance IPO Allotment Date: October 15, 2025

Canara HSBC Life Insurance IPO Listing Date: October 17, 2025

Canara HSBC Life Insurance IPO BRLMs, Registrar: The book running lead manager is SBI Capital Markets, and Kfin Technologies is the registar of the issue.

Canara HSBC Life Insurance IPO Objective: Since the IPO is entirely an offer for sale, the company will not be receiving any proceeds.

Canara HSBC Life Insurance Company Profile

Founded in 2007, Canara HSBC Life Insurance Company Ltd is a joint venture between Canara Bank and HSBC Insurance (Asia-Pacific) Holdings. The private life insurer operates across key segments including individual life insurance, group protection, pension and retirement products, and government-backed schemes such as Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

According to its red herring prospectus (RHP), the company offers 20 individual and 7 group insurance products, along with 2 optional riders. It ranked third among bank-led insurers in individual weighted premium income (WPI) between FY21 and FY25.

Bancassurance is its primary distribution channel, supported by Canara Bank, HSBC, eight regional rural banks, and Dhanlaxmi Bank, providing access to over 15,700 branches nationwide. The tie-up with Canara Bank alone connects the insurer to around 117 million customers through nearly 9,850 branches. The company also distributes policies via brokers, corporate agents, and digital platforms.