Canara HSBC Life IPO: The initial public offering (IPO) of Canara HSBC Life sailed through on the final day of the bidding on Tuesday, October 14, led by institutional demand.
The issue had opened for bidding on Friday, October 10.
Canara HSBC Life IPO Subscription Status
The demand was tepid in the first two days of bidding. However, by the end of the final day, Canara HSBC Life IPO received bids for 38,21,60,660 shares as against 16,67,15,000 shares on offer, translating into 2.29 times bids.
The qualified institutional buyers (QIBs) had a big role to play as their portion was subscribed 7.05 times, while non-institutional investor (NII) and retail quotas remained undersubscribed.
The NII segment received just 33% bids, and the retail portion 42%. The employee quota saw a healthy demand of 2.06 times.
Canara HSBC Life IPO GMP
The grey market premium for the Canara HSBC Life IPO has seen a steady decline. Today, Canara HSBC Life IPO GMP slipped to nil or ₹0 from a peak of ₹14. As per the latest GMP, the Canara HSBC Life IPO listing price would be the same as the issue price of ₹106.
Grey market premium signals investor willingness to pay over and above the issue price.
Canara HSBC Life IPO Details
Canara HSBC Life’s IPO was entirely an offer for sale of up to 23.75 crore shares priced in the range of ₹100-106 per share.
Since it’s an OFS, the company will not receive any proceeds from the public issue; instead, funds will go to selling shareholders, namely Canara Bank, Punjab National Bank and HSBC.
Investors could apply for the ₹2,517-crore public offering in lots of 140, requiring a minimum investment of ₹14,840 at the upper end of the price band.
Canara HSBC Life Insurance is a joint venture backed by Canara Bank, which holds a 51% stake, and HSBC Insurance (Asia Pacific) Holdings, a part of the HSBC Group, owning 26%. Over the years, the company has established itself as a prominent bank-led private player in India’s life insurance industry.
Canara HSBC Life Insurance shares are expected to make their stock market debut on October 17.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
