Canara Bank announced on Friday that it has initiated the process for an Initial Public Offering (IPO) for its subsidiary, Canara HSBC Life Insurance Company. Through this public offering, the bank plans to dilute approximately 14.5% of its stake in the insurance firm.
The IPO is subject to regulatory approvals from the Reserve Bank of India (RBI), the Department of Financial Services, and the Union government. If approved, it will lead to Canara HSBC Life Insurance being listed on both major stock exchanges.
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The size, timing, and other specifics of the issue will be determined in due course. Canara Bank has committed to keeping the exchanges updated on all significant developments.
Last year, Canara Bank proposed selling off its core assets through public issues. As part of this strategy, the bank planned to offload stakes in Canara Robeco AMC and Canara HSBC Life Insurance.
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Established in 2008, Canara HSBC Life Insurance is a joint venture promoted by Canara Bank, which holds a 51% stake, and HSBC Insurance (Asia Pacific) Holdings with 26%. Punjab National Bank, another state-owned lender, holds the remaining 23%.
Headquartered in Gurugram, Haryana, Canara HSBC Life Insurance operates more than 100 branch offices across India. The company leverages a multi-channel approach and a well-diversified network through Canara Bank and HSBC, serving customers in Tier 1, 2, and 3 cities.
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The insurer offers a comprehensive portfolio of life insurance products, including individual and group policies, health insurance, online term plans, and retirement solutions.
For the fiscal year 2022, Canara HSBC Life Insurance reported revenue of Rs 8,496 crore and a net profit of Rs 10.24 crore.
On Friday, the shares of Canara Bank closed at Rs 118, 2.56 per cent up from the previous day’s closing. The 52 week high and low of the share is Rs 126.58 and Rs 58.33 respectively.
