Canara HSBC Life Insurance Company Makes Dull Market Debut; Lists At Issue Price

Shares of Canara HSBC Life Insurance Company made a muted debut on the primary exchanges on Friday, listing at ₹106 per share, the same as its issue price.

The shares gained slightly in half an hour of trading. At the time of writing, the stock’s price was ₹108.78 on the NSE and ₹108.85 on the BSE. 

Mixed Response To IPO

The issue was subscribed 2.3 times overall, led by strong institutional participation, with the QIB category subscribed 7.05 times, while retail and NII portions saw lower demand at 0.42 and 0.33 times, respectively.

The ₹2,517.5-crore book-built offer was entirely an offer-for-sale (OFS) of 23.75 crore shares by promoters Canara Bank, HSBC Insurance (Asia-Pacific) Holdings, and Punjab National Bank. Post-listing, promoter holding has reduced from 77% to 62%.

Before the IPO, the company raised ₹750.32 crore from anchor investors, including ICICI Prudential Mutual Fund, DSP MF, WhiteOak Capital, Mirae Asset MF, HDFC MF, Amundi Funds, Matthews India Fund, Tata MF, Motilal Oswal MF, Allianz Global Investors Fund and Societe Generale.

The IPO, open from October 10 to 14, had a price band of ₹100 - ₹106 per share, with a minimum retail lot size of 140 shares.

SBI Capital Markets, BNP Paribas, HSBC Securities, JM Financial, and Motilal Oswal acted as lead managers for the issue.

On Thursday, Canara Robeco Asset Management Company (AMC) made a lukewarm debut on the primary indices, listing at a 5.4% premium.

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