Canara Bank announced on Friday that it has started the process for an Initial Public Offering (IPO) for its subsidiary, Canara HSBC Life Insurance Company. Through this public offer, Canara Bank plans to sell about 14.5% of its stake in the insurance company.
The IPO will need approval from regulators, including the Reserve Bank of India (RBI), the Department of Financial Services, and the union government. Once approved, Canara HSBC Life will be listed on both major stock exchanges.
Details about the size of the IPO, its timing, and other related matters will be decided later. Canara Bank will keep the stock exchanges informed about significant updates.
Last year, Canara Bank, a state-owned bank, proposed selling some of its core assets through public issues. As part of this plan, it decided to sell stakes in Canara Robeco AMC and Canara HSBC Life.
Canara HSBC Life, founded in 2008, is a joint venture. Canara Bank holds 51%, HSBC Insurance (Asia Pacific) Holdings owns 26%, and Punjab National Bank, another state-owned lender, owns 23%. The company, based in Gurugram, Haryana, operates more than 100 branch offices across India. It sells and services customers through the networks of Canara Bank and HSBC, reaching cities of all sizes. The company offers a wide range of life insurance products, including life, health, online term plans, and retirement solutions. For the financial year 2022, Canara HSBC Life reported revenue of ₹8,496 crore and a net profit of ₹10.24 crore.
On Friday, Canara Bank shares closed 2.56% higher at ₹118 on the NSE.
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