India’s Canara HSBC Life Insurance is preparing for an initial public offering (IPO) aimed at raising up to $300m (Rs26.6bn), according to Bloomberg, citing anonymous sources.
The life insurance company is jointly owned by Canara Bank, Punjab National Bank and HSBC Group’s local insurance division.
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Canara HSBC Life Insurance has started investor roadshows in anticipation of the IPO planned for early October.
The IPO details, including its size and timing, are subject to change as discussions continue.
The company did not comment on the matter, said the news agency.
In April this year, Canara HSBC Life Insurance filed a draft prospectus with India’s market regulator to sell up to 237.5 million shares, and received approval in September.
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By GlobalDataAs per the April statement, Canara Bank planned to divest its 137.8 million shares, while HSBC Insurance and Punjab National Bank will sell 4.7 million and 95 million shares, respectively.
The IPO is being coordinated by local branches of HSBC Holdings, BNP Paribas, SBI Capital Markets, JM Financial and Motilal Oswal Investment Advisors.
In its recent financial report, Canara HSBC Life recorded a profit of Rs849m for the nine months ending 31 December 2024.
Last year, Canara Bank received Reserve Bank of India approval to divest its stakes in life insurance and mutual fund businesses via IPOs.
This includes reducing its holdings in Canara Robeco Asset Management Company by 13% and in Canara HSBC Life Insurance Company by 14.5%.
According to a letter dated 5 December 2024, the bank is required to comply with government exemptions and decrease its stake in these entities to 30% by the end of October 2029.
