Canara HSBC Life IPO will open for subscription on October 10, 2025, and close on October 14, 2025. Incorporated in 2007, Canara HSBC Life Insurance Company Limited is a private life insurance company in India, jointly promoted by Canara Bank and HSBC Insurance (Asia-Pacific) Holdings Limited.
The company offers a wide portfolio of insurance and investment products, serving diverse customer needs across individual and group segments. It combines the strong domestic presence and trust of Canara Bank with HSBC’s international experience in insurance and financial services.
This blog will cover all the key details on the Canara HSBC Life IPO, including the minimum investment for different investors, IPO proceeds usage, financial performance, and risk factors.
Canara HSBC Life IPO IPO Date
The key pointers for the Canara HSBC Life IPO dates are:
- Bidding Opening Date: October 10, 2025
- Bidding Closing Date: October 14, 2025
- Allotment Date: October 15, 2025
- Initiation of Refunds (in case of less or no allotment): October 16, 2025
- Shares Credited to Your Demat Account: October 16, 2025
- IPO Listing Date: October 17, 2025
- Listing on Exchange: BSE and NSE
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Canara HSBC Life IPO Issue Size
Canara HSBC Life IPO valuation, as denoted by the market capitalisation, stood at ₹10,070 crores. Here are the essential details:
- Canara HSBC Life IPO Price Band: ₹100 to ₹106 per share
- Lot Size: 140 Shares
- Total Issue Size and Amount: 23.75 crore shares (aggregating up to ₹2,517.50 crores)
- Offer for Sale and Amount: 23.75 crore shares (aggregating up to ₹2,517.50 crores)
Canara HSBC Life IPO Proceeds Usage
The company will not receive the IPO proceeds for growth and the company’s expansion, but rather, it will go to selling shareholders. They are Canara Bank, HSBC Insurance (Asia-Pacific) Holdings Limited, and Punjab National Bank.
Canara HSBC Life IPO Reservations
Canara HSBC Life IPO reservations to different investors are:
- For QIBs: Not more than 50% of the Net Offer
- For NIIs: Not less than 15% of the Offer
- For Retail Investors: Not less than 35% of the Net Offer
Canara HSBC Life IPO Lot Size
Canara HSBC Life IPO lot size is 140 shares, wherein bidding can be done in multiples. The minimum amount that each category of investor needs to bid in this IPO is:
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 140 | ₹14,840 |
| S-HNI (Min) | 14 | 1,960 | ₹2,07,760 |
| B-HNI (Min) | 68 | 9,520 | ₹10,09,120 |
Canara HSBC Life IPO Details: Promoter Holding
Canara Bank and HSBC Insurance (Asia-Pacific) Holdings Limited are the company promoters.
Canara HSBC Life Insurance Company Limited: Company Overview
Incorporated in 2007, Canara HSBC Life Insurance Company Limited is a private life insurer in India jointly promoted by Canara Bank and HSBC Insurance (Asia-Pacific) Holdings Limited. The company serves a broad spectrum of customer needs across individual protection and savings, group solutions, and retirement planning.
Its offerings span individual life insurance (savings, endowment and term plans), group insurance solutions (including credit life and protection), pension and annuity products, participation in government schemes such as PMJJBY, and a growing footprint in digital distribution and embedded insurance partnerships.
Its product suite comprises 20 individual products, 7 group products and 2 optional riders, alongside policies under the Pradhan Mantri Jeevan Jyoti Bima Yojana. Between FY22 and FY25, the company recorded the third-highest individual weighted premium income among bank-led insurers.
Canara HSBC Life Insurance Company Limited: Financial Performance
Canara HSBC Life Insurance Company Limited’s key financials for different periods are as follows:
| Particulars (in ₹ Cr) | FY25 | FY24 | YoY Change |
|---|---|---|---|
| Individual Weighted Premium Income | 2,179 | 1,703 | 28% |
| Net Profit | 117 | 113 | 3% |
| Value of New Business | 446 | 378 | 18% |
| Asset Under Management | 41,166 | 37,380 | 10% |
| 13th Month Persistency Ratio (%) | 82.54% | 80.73% | 1.81% |
| Solvency Ratio (%) | 205.82% | 212.83% | -7.01% |
| Claim Settlement Ratio (%) | 99.38% | 99.31% | 0.07% |
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- Individual Weighted Premium Income: The company saw a strong 28% YoY jump in individual premium income, rising to ₹2,179 crore in FY25. The growth was powered by higher retail participation and stronger contributions from digital channels.
- Net Profit: Net profit inched up 3% YoY to ₹117 crore in FY25, reflecting steady premium flows, tight cost management, and a balanced product portfolio that helped sustain margins.
- Value of New Business (VNB): VNB grew 18% year-on-year to ₹446 crore, driven by a healthy mix of protection and non-par products and stronger sales productivity across partner networks.
- Assets Under Management (AUM): AUM crossed the ₹41,000 crore mark, up 10% from last year, supported by consistent fund inflows and robust policyholder retention.
- 13th-Month Persistency Ratio: Customer retention continued to improve, with the 13th-month persistency rising to 82.54%, reflecting stronger engagement and trust among policyholders.
- Solvency Ratio: The solvency ratio stood at a comfortable 205.82%, well above the regulatory requirement, underscoring the company’s strong capital base and financial stability.
- Claim Settlement Ratio: The company maintained an impressive claim settlement ratio of 99.38%, highlighting its commitment to prompt and transparent service for customers and their families.
Canara HSBC Life IPO Peer Comparison
Here is the peer comparison table for Canara HSBC Life Insurance Company Limited with its listed peers:
| Company Name (FY25) | EPS (Basic ₹) | P/E (x) | RoNW (%) |
|---|---|---|---|
| Canara HSBC Life Insurance Company Limited | 1.23 | 81.30 | 7.97 |
| SBI Life Insurance Company Limited | 24.09 | 74.16 | 15.13 |
| HDFC Life Insurance Company Limited | 8.41 | 90.27 | 11.75 |
| ICICI Prudential Life Insurance Company Limited | 8.21 | 73.66 | 10.34 |
- EPS: Canara HSBC Life reported a basic EPS of ₹1.23, which is lower than its peers, reflecting its relatively smaller scale compared to SBI Life (₹24.09) and HDFC Life (₹8.41).
- P/E Ratio: The company’s estimated P/E ratio stands at 81.3x, indicating a slightly high valuation.
- Return on Net Worth: With a RoNW of 7.97%, Canara HSBC Life lags behind SBI Life Insurance (15.13%) and HDFC Life Insurance (11.75%), suggesting there is room to improve profitability and capital efficiency relative to larger competitors.
Canara HSBC Life IPO Risk Factors
Canara HSBC Life IPO GMP is ₹10 as of October 9, 2025 (at 15:02). It is expected to list at a 9.43% gain at a price of ₹116. However, GMP is not a safe or assured criterion to bid for an IPO. It is important to do your own analysis before investing in IPO.
Canara HSBC Life IPO is exposed to various risk factors that can eventually affect its business and investors’ perception:
- Any termination or unfavourable modification of the company’s bancassurance partnerships, particularly its distribution agreements with Canara Bank (promoter) or HSBC India, may impact business growth and revenue.
- A decline in persistency ratios or large-scale policy surrenders by customers could adversely affect premium income and profitability.
- Interest rate fluctuations could influence investment returns and asset valuations.
- Inaccuracies or incomplete information collected during underwriting, claims processing, or automation may lead to financial and operational risks.
- Exposure to catastrophic events, including natural disasters or man-made crises, may disrupt operations and impact claims experience.
- The inability to retain, maintain, or develop distribution partnerships, or any disruption or termination of existing relationships, could affect the company’s sales and market reach.
- Technology-related failures or cybersecurity breaches, such as software bugs, malware, or hacking incidents, could disrupt operations or compromise sensitive data.
For all the insights on Canara HSBC Life IPO and detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels. Take smart decisions and apply for the Canara HSBC Life IPO easily on the SMC ACE Apply by opening free demat account now.
Frequently Asked Questions – FAQs
1. What are the Canara HSBC Life IPO dates and price band?
Canara HSBC Life IPO bidding window is 10–14 October 2025. Allotment is expected on 15 October 2025, refunds and demat credit on 16 October 2025, and listing on 17 October 2025.
2. How much is the minimum investment for retail investors?
At the upper price band, one lot of 140 shares costs a minimum of ₹14,840 for retail investors. The maximum amount for retail investors can go to ₹1,92,920 with 13 lots.
3. Is this a fresh issue or an Offer for Sale, and who gets the proceeds?
This is an offer for sale of 23.75 crore equity shares, meaning that the proceeds will go to the selling shareholders, i.e., Canara Bank, HSBC Insurance (Asia-Pacific) Holdings Limited, and Punjab National Bank.
References:
https://www.jmfl.com/Common/getFile/5286
https://www.investorgain.com/gmp/canara-hsbc-life-insurance-ipo-gmp/1499/
Author: All Content is verified by SMC Global Securities.
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