India-based Canara HSBC Life Insurance Company Ltd, backed by Karnataka-headquartered Canara Bank, has filed its draft red herring prospectus with SEBI for an IPO. The issue will be an Offer for Sale of 23.75 crore shares by existing shareholders, including Canara Bank, HSBC Insurance, and Punjab National Bank. The move follows the robust financial growth of the insurer, which posted a 232.61% CAGR in profits between FY22 and FY24.

Canara HSBC Life Insurance Company Ltd, a leading private life insurance provider in India headquartered in Gurugram, Haryana, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on April 29, 2025, marking the company’s plans to go public.

The company is a joint venture between Canara Bank, headquartered in Bengaluru, Karnataka—India’s fourth-largest public sector bank by assets—HSBC Insurance (Asia Pacific) Holdings, and Punjab National Bank. Canara Bank holds a 51% stake in the firm, while HSBC holds 26%.

According to the DRHP, the IPO will be a pure Offer for Sale (OFS), with a total of 23.75 crore equity shares to be offloaded by existing shareholders. Canara Bank will sell around 13.77 crore shares, HSBC Insurance will offer 0.47 crore shares, and Punjab National Bank plans to divest 9.5 crore shares. As this is an OFS, the company will not receive any proceeds from the issue.

As of March 31, 2024, the insurer held the third-largest assets under management (AUM) among life insurance companies promoted by public sector entities. It was also ranked among the top five bank-led life insurers in India based on the number of lives covered in fiscal year 2024, according to a CRISIL Report.

Canara HSBC Life Insurance has shown impressive financial performance in recent years. Its profit after tax grew at a compound annual growth rate (CAGR) of 232.61%, increasing from ₹102.43 million in FY22 to ₹1,133.17 million in FY24. For the nine-month period ending December 31, 2024, it reported a profit of ₹848.93 million.

This marks the second IPO initiative from a Canara Bank-supported entity in recent months, following the filing of Canara Robeco Asset Management Company.

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