Canara HSBC Life Insurance files draft IPO papers with only OFS component

Canara HSBC Life IPO: Life insurer Canara HSBC Life Insurance Company has filed preliminary papers with the market regulator Securities and Exchange Board of India for an initial public offering.

The proposed initial share sale will be exclusively an offer for sale of up to 237,500,000 shares, according to the draft red herring prospectus (DRHP).

Under the OFS, Canara Bank, HSBC Insurance (Asia-Pacific) Holdings Limited, and Punjab National Bank will offload their stake.

Since the public issue is solely an OFS, the company will not get any IPO proceeds. The net fresh issue proceeds will go to selling shareholders.

BNP Paribas, SBI Capital Markets, HSBC Securities & Capital Markets, Motilal Oswal Investment Advisors and JM Financial are the issue's book-running lead managers. The company's shares are proposed to be listed on the BSE and NSE.

Canara HSBC Life is a joint venture in which Canara Bank holds 51% stake, HSBC Insurance (Asia-Pacific) Holdings 26% stake and Punjab National Bank 23% stake.

Headquarted in Gurugram, it is one of the bancassurance-led insurance companies and has been in the business for more than 15 years. Its products, which includes saving and endowment plans, term plans, retirement solutions and the Pradhan Mantri Jeevan Jyoti Bima Yojana, are sold through multi-channels and well-diversified network of HSBC and CAnara Bank, located in tier 1, 2 and 3 cities.

Notably, on Friday, Canara Robeco Asset Management Company had filed a DRHP with SEBI for floating an IPO, which will be a pure OFS of 4.98 crore equity shares.

Under the OFS, Canara Bank and ORIX Corporation Europe NV will divest 2.59 crore and 2.39 crore shares, respectively.

Canara Bank holds a 51% stake in Canara Robeco AMC, while Orix Corporation holds the remaining stake.