Canara HSBC IPO: Insurance firm sets price band at Rs 100 to Rs 106; targets Rs 10,000 crore valuation

Canara HSBC Life Insurance Company Ltd on Tuesday announced the price band for its upcoming IPO, setting it at the range of Rs 100 to Rs 106 per share, targeting a valuation of about Rs 10,000 crore at the upper end.The insurer’s Rs 2,516-crore public offering will open for subscription on October 10 and close on October 14. Bidding for anchor investors is scheduled for a single day on October 9, according to a public announcement.Canara HSBC Life’s IPO will be a full offer for sale (OFS), with promoters and an investor putting up a total of 23.75 crore shares. Canara Bank is set to sell 13.77 crore shares, HSBC Insurance (Asia-Pacific) Holdings Ltd will sell 47.5 lakh shares, while Punjab National Bank plans to offload 9.5 crore shares.As this is an OFS, Canara HSBC Life will not receive any money from the IPO, instead the proceeds will go entirely to the selling shareholders, PTI reported.Investors can bid for a minimum of 140 shares and in multiples of 140 thereafter. Canara HSBC Life is expected to list on the stock market on October 17.Since its incorporation in 2007, the company has grown into a leading bank-backed private player in India’s life insurance sector. For this IPO, 50% of the shares are reserved for qualified institutional buyers (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors. Canara HSBC Life is a joint venture promoted by Canara Bank, which holds a 51% stake, and HSBC Group’s HSBC Insurance (Asia Pacific) Holdings, which owns 26%. Canara Robeco Asset Management is also launching its IPO, open for subscription from October 9 to 13. In December last year, Canara Bank had received approval from the Reserve Bank to divest its stake in its life insurance and mutual fund businesses.