Canara HSBC Life IPO Subscription: The initial public offering (IPO) of Canara HSBC Life, which opened for bidding today, October 18, witnessed a tepid demand for its share sale, garnering just 9 times bids.
The issue is open for bidding till Tuesday, October 14.
Canara HSBC Life IPO Subscription Status
At the end of the first day of the bidding, the issue received bids for 1,51,36,800 shares as against 16,67,15,000 shares on offer, translating into a subscription status of 0.09 times.
The retail category was subscribed 14 per cent, and the portion for non-institutional investors received 5% bids. The qualified institutional buyers (QIBs) category saw 3% bids. Meanwhile, the employee category was subscribed the most at 47%.
Canara HSBC Life IPO GMP
Canara HSBC Life IPO GMP (grey market premium) has trended lower to ₹2 today. This means Canara HSBC Life shares are trading ₹2 higher than the issue price of ₹106. At the prevailing GMP and issue price, Canara HSBC Life IPO listing price could be ₹108, a premium of 1.9%.
Grey market premium signals investor willingness to pay over and above the issue price.
About Canara HSBC Life IPO
The ₹2,516-crore public offering of Canara HSBC Life IPO has a price band of ₹100 to ₹106 per share. Investors can bid for the share sale in lots of 140 shares.
Canara HSBC Life IPO is a complete offer for sale (OFS) of 23.75 crore equity shares by promoters and an investor. Canara Bank will sell 13.77 crore equity shares, HSBC Insurance (Asia-Pacific) Holdings will offload 47.5 lakh shares, and Punjab National Bank plans to divest 9.5 crore equity shares.
Since the book-built offer is an OFS, the company will not receive any proceeds from the public issue.
Canara HSBC Life Insurance Company is a joint venture promoted by Canara Bank, which holds a 51% stake, and HSBC Group’s HSBC Insurance (Asia Pacific) Holdings, which has a 26%. It is a leading life insurance player in India, with the third-highest individual weighted premium income amongst bank-led insurers between Fiscal 2022 and 2025.
Ahead of the share sale, Canara HSBC Life Insurance Company raised around ₹750 crore from anchor investors.
Canara HSBC Life shares are expected to make their stock market debut on October 17.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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