Canara HSBC Life Insurance IPO Day 2: Check GMP, subscription status and important details. Should you apply?

Canara HSBC Life Insurance Company’s initial public offering (IPO) worth Rs 2,517.50 crore entered its second day of bidding on Monday. By the end of Day 1, the issue was only 9% subscribed, while bids were received for 1.51 crore shares out of the total 16.67 crore shares on offer.

The gray market premium (GMP) for Canara HSBC Life shares has fallen from Rs 10 to Rs 2, with the IPO price band fixed at Rs 106. This IPO is a complete offer-for-sale (OFS) comprising 23.75 crore shares. The issue will remain open for three days and close on Tuesday, October 14.

Canara HSBC Life Insurance IPO Subscription Status:

According to data from the Bombay Stock Exchange (BSE), at the end of Day 1 of bidding, the total subscription for the IPO stood at 9%. This means that of all shares offered so far, only 9% have been bid on.

Retail Individual Investors (RIIs) showed relatively higher interest and subscribed to 14% of the shares allotted to them. This indicates that individual investors were more active than other groups on the first day.

Non-institutional investors (NIIs), which generally include high net worth individuals and other investors not belonging to the retail or institutional categories, have subscribed to just 5% of their allotted shares of Rs 3.53 crore.

Qualified Institutional Buyers (QIBs), which typically include mutual funds, insurance companies and other large institutional investors, showed the least enthusiasm and subscribed to just 3% of the Rs 4.71 crore shares reserved for them.

This early subscription pattern indicates modest investor interest across all categories as the IPO continues into subsequent offering days.

Canara HSBC Life IPO Gray Market Premium (GMP)

Canara HSBC Life shares are currently trading at a gray market premium (GMP) of Rs 2. With the IPO price band set at Rs 106, this indicates an estimated listing price of around Rs 108, indicating a premium of around 1.9%.

Note: The gray market premium (GMP) reflects the expected price at which shares could be traded unofficially before the official market listing. While it provides insight into investor sentiment, the actual listing price may differ depending on market conditions at the time of the IPO debut.

Canara HSBC Life Anchor Investors

Canara HSBC Life Insurance Company Ltd on Thursday announced that it has secured over Rs 750 crore from major investors, just a day before its IPO opens for public subscription.

About the IPO of Canara HSBC Life

The IPO is fully structured as an Offer For Sale (OFS). Promoters Canara Bank and HSBC Insurance (Asia-Pacific) Holdings Limited are selling up to 13.77 crore shares and 47.5 lakh shares respectively. Moreover, Punjab National Bank (PNB), an existing investor shareholder, will get rid of 9.5 crore shares.

Retail investors can participate by bidding for shares worth up to Rs 2 lakh.

The IPO price range is fixed between Rs 100 and Rs 106 per equity share. It is a 100% book-built issue, with a lot size of 140 shares.

About the company

Canara HSBC Life Insurance is a private life insurance company in India, jointly promoted by Canara Bank and HSBC Insurance. According to a Crisil report, the company has recorded the third highest growth in individual weighted premium income (WPI) among bank-led insurers between fiscal 2022 and fiscal 2025.

The company’s Annualized Premium Equivalent (APE) has shown steady growth, reflecting continued efforts to expand its product range and services.

Profit after tax (PAT) grew at a compound annual growth rate (CAGR) of 13.26%, from Rs 91.2 crore in FY 2023 to Rs 117 crore in FY 2025. For the quarter ended June 2025, PAT stood at Rs 23.4 crore. Embedded value also rose significantly from Rs 4,272 crore at the end of FY23 to Rs 6,111 crore in FY25.

Financially, Canara HSBC Life is well capitalized, with a solvency ratio of 200.42% as of June 2025 – well above the statutory minimum of 150%.

The company has touched 10.51 million lives to date, underscoring its extensive reach and strong customer trust.

Should you apply?

According to SBI Securities, Canara HSBC Life is well positioned to leverage its strong promoter support, broad bancassurance network and diversified product portfolio to support growth.

Key strengths include increasing contributions from bancassurers, improving policy continuity and steady premium growth, all of which support a clear view of long-term profitability. Additionally, the company’s focus on technology integration and product innovation improves scalability and customer engagement.

At the higher end, Canara HSBC Life Insurance is valued at a price-to-embedded-value (P/EV) multiple of 1.6x for Q1 FY26.

SBI Securities also forecasts that life insurance premiums for bank-led insurers will grow at a CAGR of 22%-25% between FY25 and FY28, from Rs 5.4 lakh crore to Rs 5.7 lakh crore. Canara HSBC Life is well-placed to benefit from this growth momentum in the sector.

Canara HSBC Life IPO Lead Managers

The book-running lead managers for this IPO are SBI Capital Markets, BNP Paribas, HSBC Securities and Capital Markets (India), JM Financial and Motilal Oswal Investment Advisors.

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