Canara HSBC Life Insurance IPO

About Canara HSBC Life Insurance IPO

The Canara HSBC Life Insurance IPO opens on Friday, 10 October 2025 and closes on Tuesday, 14 October 2025. The tentative listing is on Friday, 17 October 2025. The initiation of refund will take place on Thursday, 16 October 2025. The credit of shares to the demat account will take place on Thursday, 16 October 2025. The allotment of bids will take place on Wednesday, 15 October 2025.

The offer consists of an offer for sale component. The offer for sale is 23,75,00,000 shares (aggregating up to ₹2,517.50 Cr). The total number of shares is 23,75,00,000 while the aggregate amount is yet to be finalised.

Canara HSBC Life Insurance Company, a private life insurer, was incorporated in 2007 and is promoted by Canara Bank, which holds a 51.00% stake, and HSBC Insurance (Asia-Pacific) Holdings Limited, which holds a 26.00% stake as of the date of this Red Herring Prospectus. According to the CRISIL report, their individual weighted premium income (WPI) collected by the company grew third highest among bank-led insurers between fiscal 2022 and 2025 and was the second-highest year-on-year growth among their peer set for Fiscal 2025.

Objective of Canara HSBC Life Insurance IPO

• To carry out the Offer for Sale of up to 23,75,00,000 Equity Shares of face value of ₹10 each by the Selling Shareholders.
  
• Achieve the benefits of listing the Equity Shares on the Stock Exchanges.
  
• Enhance visibility and brand image and provide liquidity and a public market for the Equity Shares in India.
  

Industry Outlook

According to the CRISIL Report, the total premium growth for bank-led life insurers in fiscal 2023 and 2024 was 16.4% and 13.9%, respectively, on a year-on-year basis, whereas the same for non-bank-led players was higher at 16.2% and 18.9% in fiscal 2023 and 2024, respectively. The increasing adoption of digital technologies, such as online platforms and mobile apps, has improved customer experiences, improved underwriting and increased efficiency in the life insurance industry. The new business premium also witnessed growth of 18.3% CAGR and 14.7% CAGR for bank-led and non-bank-led players, respectively, during fiscal 2014 to 2025.

Canara HSBC Life Insurance Company Information

Canara HSBC Life Insurance Company is a private life insurer in India and is promoted by Canara Bank (which ranks as the fourth largest public sector bank by total assets in India as at 31 March 2025), according to the CRISIL Report, and HSBC Insurance (Asia-Pacific) Holdings Limited, a member of The Hongkong and Shanghai Banking Corporation Limited (“HSBC”) group, whose global reputation as a financial institution adds credibility and brand value to them. According to the CRISIL Report, their individual weighted premium income (“WPI”) collected by the Company grew third highest amongst bank-led insurers between fiscal 2022 and 2025 and was the second highest year-on-year growth amongst their peer set for fiscal 2025. According to the CRISIL Report, they had the third highest assets under management (“AUM”) amongst public sector bank-promoted led life insurers, as of 31 March 2025.

They offer a comprehensive range of life insurance products tailored for both individual and group (i.e., companies, businesses or organisations) customers. Their offerings primarily include saving and endowment plans, term (pure protection) plans, retirement solutions, group credit life and protection plans and the Pradhan Mantri Jeevan Jyoti Bima Yojana (“PMJJBY”). As on the date of this Red Herring Prospectus, their product portfolio comprises 20 individual products, seven group products and two optional rider benefits, along with policies under the PMJJBY scheme. Their products have comprehensive protection, guaranteed income and market-linked growth features. They also deliver options like multiple payout choices, investment management flexibility and the ability to customise through a breadth of plan and fund offerings, including limited pay annuity plans and over ten fund choices in unit-linked products.

Strengths of Canara HSBC Life Insurance IPO

• Established parentage and a trusted brand amplifying customer attraction.
  
• Multi-channel distribution network with pan-India presence.
  
• Long term value creation driven by consistent and profitable financial performance
  
• Diversified product portfolio with a focus on customer centricity enabling growth across business cycles.
  
• Technology-integrated business platform with strong focus on automation and digital analytics leading to prudent risk management framework.
  
• Experienced management team supported by a team of dedicated professionals.
  

Risks of Canara HSBC Life Insurance IPO

• Any termination of, or adverse change in, their bancassurance arrangements, and in particular their distribution agreement, as amended, with their Promoter, Canara Bank, or one of their group companies, HSBC India, or a decline in performance standards of their bancassurance partners.
  
• Adverse variation in persistency metrics or adverse persistency metrics as well as concentrated surrenders by customers.
  
• Fluctuations in interest rates.
  
• Failure to verify the accuracy and completeness of information collected from customers and counterparties in underwriting, claims handling and automation.
  
• Catastrophic events, such as natural or man-made disasters.
  
• Failure to retain, maintain or secure new distribution relationships, as well as any termination or disruption of their existing distribution relationships.
  
• Failures of or inadequacies in their information technology systems, including risks due to software bugs, computer virus attacks, malware and cybersecurity attacks.
  
• Any failure to adequately protect confidential customer information.
  
• Changes in customer preferences and market trends for life insurance and pension products.
  
• Termination of relationships with third-party service providers.
  

*This will be included on finalization of Price Band.

(1) Financial information of Canara HSBC Life Insurance Company is derived from the Restated Financial Information.

(2) Source: Annual report of the peer companies for the Fiscal 2025.

Notes: 1. All the financial information for listed industry peers mentioned above is on a consolidated basis (unless otherwise available only on a standalone basis).

2. Gross written premium is considered as revenue from operations.

3. Basic EPS and diluted EPS refers to the basic EPS and diluted EPS respectively sourced from the financial statements of the respective peer group companies for the Fiscal 2025.

4. NAV per Equity Share (in ₹) = Restated net worth at the end of the year/ period / total number of Equity Shares outstanding at the end of the year/ period.

5. P/E ratio is calculated as closing share price as of October 3, 2025 (source: NSE) divided by the diluted EPS for year ended March 31, 2025.

6. RoNW is calculated by dividing profit (loss) after tax for a fiscal year/ period by average net worth, where average net worth is calculated by dividing sum of closing net worth of the current fiscal year/ period and closing net worth of previous fiscal year/ period by 2.

Anchor Investor Bidding Date: Thursday, 9 October 2025

Registrar: KFin Technologies Limited
Book Running Lead Managers:
SBI Capital Markets Limited
BNP Paribas
HSBC Securities & Capital Markets (India) Private Limited
JM Financial Limited
Motilal Oswal Investment Advisors Limited

Business Model

The company earns its revenue through the following ways: Offering a comprehensive range of life insurance products tailored for both individuals and groups (i.e., companies, businesses, or organisations). Their offerings primarily include savings and endowment plans, term (pure protection) plans, retirement solutions, group credit life and protection plans, and the Pradhan Mantri Jeevan Jyoti Bima Yojana (“PMJJBY”).

Canara HSBC Life Insurance Company Growth Trajectory

The company’s Total Income for FY25 was ₹10626.401 crores compared to ₹11755.715 crores in FY24, and ₹8354.494 crores in FY23 respectively. While the company’s Profit After Tax for FY25 was ₹116.981 crores compared to ₹113.317 crores in FY24, and ₹91.194 crores in FY23 respectively. EBITDA for FY25 was ₹149.910 crores compared to ₹146.564 crores in FY24, and ₹118.818 crores in FY23 respectively.

Canara HSBC Life Insurance Company Market Position

According to the CRISIL Report, Canara HSBC Life Insurance Company had the third highest assets under management (“AUM”) amongst public sector bank-promoted life insurers, as at 31 March 2025.

Incorporated in 2007, they have grown into a prominent bank-led private player in the Indian life insurance sector as they rank third amongst public sector bank-led life insurers in India, according to the CRISIL Report, based on the number of lives covered for fiscal 2025. Their Annualised Premium Equivalent (“APE”) has consistently grown, reflecting their efforts to expand their products and services and increase their market presence.

They gain considerable advantage in fostering new business growth by harnessing their bancassurance partnerships with their promoters. Canara Bank, as their largest shareholder, according to the CRISIL Report, ranks as the fourth largest public sector bank in India by total assets, as at 31 March 2025. Their distribution agreement with HSBC India, one of their group companies, offers them significant advantages as HSBC, according to the CRISIL Report, ranked as the second largest foreign bank by total assets in India as at 31 March 2025, managed 26 branches in India, as at 17 January 2025, and had also received approval for 20 new branches in January 2025. Bancassurance accounted for 92.33%, 91.71%, 87.07%, 78.71% and 57.20% of their new business premium during the three-month periods ended 30 June 2025, 30 June 2024, and fiscals 2025, 2024 and 2023, respectively. According to the CRISIL Report, as at 31 March 2025, Canara Bank managed 9,849 branches across India. They also have access to the branch network of seven regional rural banks through distribution agreements. According to the CRISIL Report, life insurance companies’ bancassurance partners’ extensive geographical reach across Tier 1, Tier 2 and Tier 3 cities in India, vast customer bases, well-regulated operations, industry knowledge and established brand reputation all contribute to the growth of their Company. Furthermore, according to the CRISIL Report, through their distribution agreements with these partners they have access to an aggregate of over 15,700 geographically distributed network of branches across India, as at 31 March 2025.

According to the CRISIL Report, they were one of the life insurers to report the fastest three consecutive years of profit from the first year of operation amongst their Peer Set and were amongst the fastest life insurers to generate profits in the fifth year of operations. Additionally, their Operating RoEV (as defined below) was 19.53% in fiscal 2025, highlighting their consistent profitability, financial performance and efficiency.

As of 31 March 2025, the company’s Total Income, Profit After Tax, and EBITDA were ₹10722.969 crores, ₹116.981 crores, and ₹149.910 crores, respectively.

How To Check Allotment Status of Canara HSBC Life Insurance IPO?

You can check the Canara HSBC Life Insurance IPO Allotment Status of shares either on the website of the National Stock Exchange (NSE) or on the website of the registrar KFin Technologies Limited.

To check the status on the NSE website:

• Visit the NSE website
  
• Click on “Investor Services” and choose “Application Status Check”
  
• Choose the issue type — Equity or Debt (Equity in this case)
  
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Canara HSBC Life Insurance Company Limited
  
• Enter your application number or PAN number
  
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
  

Follow these steps to know the allotment status on the registrar’s website:

• Visit the KFin Technologies Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Canara HSBC Life Insurance Company Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How to Apply forCanara HSBC Life Insurance Company IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section
  
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for
  
• Step 3: Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange
  
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds
  
• Step 5: Approve Request: Your funds will be blocked once you approve the mandate request on your UPI