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 0.09 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 9%.
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 Canara HSBC Life Insurance IPO has a price band of ₹100 to ₹106 per share. Investors can place bids in lots of 140 equity shares.
The IPO is a complete offer for sale (OFS) of 23.75 crore shares by existing promoters and an investor. As part of the offer, Canara Bank, HSBC Insurance (Asia-Pacific) Holdings, and Punjab National Bank will divest their stakes.
Since the issue is entirely an OFS, the company itself will not receive any proceeds from the offer.
Canara HSBC Life Insurance Company is a joint venture promoted by Canara Bank, which holds a 51% stake, and HSBC Insurance (Asia-Pacific) Holdings, which owns 26%. The company is a prominent player in India’s life insurance sector and ranked third in terms of individual weighted premium income among bank-promoted insurers between FY22 and FY25.
Prior to the IPO opening, the company secured approximately ₹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.
