In preparation for its first public offering (IPO), Canara HSBC Life Insurance Company Limited has submitted preliminary documentation to capital markets regulator Sebi. Canara Robeco Asset Management Company submitted its draft initial public offering (IPO) paperwork to the Securities and Exchange Board of India (SEBI) a few days before.

According to a draft red herring prospectus (DRHP) submitted on Monday, Canara HSBC Life Insurance Company’s initial public offering (IPO) is a complete offer for sale (OFS) of 23.75 crore equity shares of promoters and investors, similar to Canara Robeco AMC.

Under the OFS, Punjab National Bank intends to sell 9.5 crore equity shares, Canara Bank will sell 13.77 crore equity shares, and HSBC Insurance (Asia-Pacific) Holdings Ltd will sell 4.75 lakh shares. The corporation does not profit from the public offering since it is OFS.

Canara Bank, which has a 51 percent investment in Canara HSBC Life Insurance Company, and HSBC Insurance (Asia Pacific) Holdings, a division of the HSBC Group, both own a 26 percent stake in the joint venture. Canara HSBC Life Insurance Company was founded in 2007 and has since grown to become a prominent private bank in the Indian life insurance market.

Due to stock market instability, the business filed the draft document at a time when the IPO market is slowing down.

The issue’s primary bookkeepers are SBI Capital Markets Ltd, JM Financial Ltd, HSBC Securities, BNP Paribas, and Capital Markets (India) Pvt Ltd, as well as Motilal Oswal Investment Advisors Ltd.

Canara Bank said in December 2024 that the Reserve Bank has approved the bank’s plan to sell its interest in mutual fund and life insurance businesses.