Description

Canara HSBC Life Insurance Company Limited has allocated 7.08 crore equity shares to 24 anchor investors at ₹106 per share, raising ₹750.31 crore in its initial public offering.

Summary

Canara HSBC Life Insurance Company Limited has successfully allocated 7,07,85,000 equity shares to 24 anchor investors at an Anchor Investor Allocation Price of ₹106 per equity share (including share premium of ₹96). The total amount raised through anchor allocation is ₹750.31 crore. The Board approved this allocation on October 9, 2025, in consultation with five Book Running Lead Managers: SBI Capital Markets Limited, BNP Paribas, HSBC Securities and Capital Markets (India) Private Limited, JM Financial Limited, and Motilal Oswal Investment Advisors Limited.

Key Points

  • Total equity shares allocated to anchor investors: 7,07,85,000 shares
  • Anchor Investor Allocation Price: ₹106 per share (face value ₹10 + share premium ₹96)
  • Total funds raised from anchor allocation: ₹750.31 crore
  • Number of anchor investors: 24 institutional investors
  • Largest single allocation: HDFC Balanced Advantage Fund (52,85,980 shares, 7.47%)
  • Major participants include ICICI Prudential, HDFC, DSP, Mirae Asset, and international funds
  • Book Running Lead Managers: SBI Capital Markets, BNP Paribas, HSBC Securities, JM Financial, and Motilal Oswal

Anchor Investor Details

Top Allocations:

  1. HDFC Balanced Advantage Fund: 52,85,980 shares (7.47%) - ₹56.03 crore
  2. ICICI Prudential Banking and Financial Services Fund: 46,02,920 shares (6.50%) - ₹48.79 crore
  3. ICICI Prudential Innovation Fund: 46,02,920 shares (6.50%) - ₹48.79 crore
  4. Ashoka Whiteoak ICAV - Emerging Markets Equity Fund: 42,03,220 shares (5.94%) - ₹44.55 crore
  5. Allianz Global Investors Fund - Allianz India Equity: 35,11,480 shares (4.96%) - ₹37.22 crore
  6. Pictet - Indian Equities: 35,11,480 shares (4.96%) - ₹37.22 crore
  7. HDFC Value Fund: 35,24,080 shares (4.98%) - ₹37.36 crore
  8. HDFC Multi Cap Fund: 35,24,080 shares (4.98%) - ₹37.36 crore

Other Major Participants:

  • ICICI Prudential Mutual Funds: Multiple schemes with total significant allocation
  • International Funds: Ashoka Whiteoak, Allianz, Pictet, Amundi, Marshall Wace, Matthews India
  • Domestic Mutual Funds: DSP, Mirae Asset, Tata, Whiteoak Capital schemes
  • Institutional Investors: Public Sector Pension Investment Board

Company Information

  • Company Name: Canara HSBC Life Insurance Company Limited
  • IRDAI Registration Number: 136
  • Corporate Identity Number: U66010DL2007PLC248825
  • Registered Office: 8th Floor, Unit No. 808-814, Ambadeep Building, Plot No. 14, Kasturba Gandhi Marg, New Delhi-110001
  • Corporate Office: 35th Floor, IFC, (M3M) Golf Course Ext Rd, Badshahpur, Sector 66, Gurugram, Haryana 122101
  • Equity Share Face Value: ₹10 per share

IPO Details

  • Type: Initial Public Offering (IPO)
  • Security: Equity shares of face value ₹10 each
  • Anchor Allocation Date: October 9, 2025
  • Price Band: ₹106 per share for anchor investors
  • Share Premium: ₹96 per share

Important Dates

  • Board Meeting Date: October 9, 2025
  • Anchor Allocation Date: October 9, 2025
  • Circular Date: October 9, 2025

Impact Assessment

Market Impact: The successful anchor allocation with strong participation from leading domestic mutual funds (ICICI Prudential, HDFC, DSP, Mirae Asset) and prominent international funds demonstrates robust institutional investor confidence in the life insurance sector. The oversubscription in the anchor book typically indicates positive sentiment for the mainboard IPO.

Investor Significance: Anchor investor allocation at ₹106 per share sets a price benchmark for retail and institutional investors participating in the public issue. The diverse mix of growth-oriented funds, banking/financial sector funds, and international equity funds suggests broad-based appeal.

Sector Impact: As a joint venture between Canara Bank and HSBC, this IPO adds another listed player to India’s life insurance sector, providing investors with additional options in the growing insurance market. The strong anchor participation reflects positive outlook on the insurance industry’s growth prospects.

Lock-in: Anchor investors typically have a 30-day lock-in period from the date of allotment, which provides stability during the initial trading period post-listing.

Impact Justification

Significant IPO anchor allocation for a life insurance company with major institutional participation; medium impact as it's a pre-listing announcement relevant to IPO investors.