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By Nitin Negandhi
Canara HSBC Life Insurance Ltd.
Canara HSBC Life Insurance Company was promoted by Canara Bank and HSBC Holdings. Punjab National Bank (PNB) became a promoter following the merger of Oriental Bank of Commerce with PNB.
Canara HSBC Life Insurance is launching an offer-for-sale (OFS) of 23.75 crore equity shares at an upper price band of Rs. 106 per share. Post-issue, promoter holding will reduce from 77% to 62%.
As of 30th June 2025, the company managed assets worth over Rs. 43,000 crore and had covered more than ten million lives. Its solvency ratio stands at over 2 times, above the regulatory requirement of 1.5 times. Around 70% of its business is secured through Canara Bank’s network while 15% comes from HSBC.
Revenue is derived from a diversified product mix, comprising unit-linked insurance plans (ULIPs) contributing over 50%, non-participating savings plans at 20%, annuity products at 13% and the remaining from other offerings. Between 2023 and 2025, the company recorded a moderate CAGR of 5.6% in revenue with net profit rising 13% from Rs. 91 crore to Rs. 117 crore during the same period.
Financial Performance: (Rs. in crore)
| Particulars | Mar-25 | Mar-24 | Mar-23 | CAGR (%) |
| Income from Operations | 803 | 713 | 720 | 5.6% |
| Net Profit/Loss (-) | 117 | 113 | 91 | 13.4% |
| Equity capital | 950 | 950 | 950 | |
| EPS | 1.2 | 1.2 | 1.0 |
Over the last decade, the life insurance industry has recorded double-digit growth, driven by innovative products and increased digitization. The Indian insurance sector is expected to witness healthy growth due to rising incomes and favorable demographics.
Movement of listed life insurance companies:
Life Insurance Corporation of India (LIC) remains the largest insurer with a market share of 29.4%, followed by SBI Life Insurance (16%) and HDFC Life Insurance (11%). Canara HSBC Life Insurance ranks eleventh. Listed insurers like SBI Life and HDFC Life have delivered moderate CAGR of 12.5% since their listing in the last quarter of 2017. LIC is still trading below its issue price, having been listed at Rs. 817 in June 2022 against an offer price of Rs. 949, dipping to Rs. 535 by March 2023. SBI Life initially dipped to Rs. 509 against an offer price of Rs. 700.
| Peer Comparison FY25 | Canara HSBC Life | LIC | SBI Life | HDFC Life | ICICI Life | |
| Ranking in terms of market share | 11 | 1 | 2 | 3 | 6 | |
| Market Cap (Mcap) | Rs. in cr. | 2114 | 5,56,600 | 1,81,530 | 1,62.664 | 85,382 |
| EPS | Rs. | 1.2 | 78 | 24 | 8 | 53 |
| PE Ratio | No. of times | 86 | 11 | 75 | 94 | 11 |
| Face Value (FV) | Rs. | 10 | 10 | 10 | 10 | 10 |
| Current market price (CMP) | Rs. | 106 | 895 | 1811 | 754 | 590 |
| IPO Price | 106 | 949 | 700 | 290 | 334 | |
| IPO month | Oct-25 | May-22 | Oct-17 | Nov-17 | Sep-16 | |
| Market price appreciation since listing | -1.9% | 12.6% | 12.7% | 6.5% | ||
Investors should consider such price movements while investing.
Disclaimer:
The writer is not a SEBI-registered analyst. He and his friends and relatives may or may not participate in the IPO. This write-up is for educational purposes only, and investors should consult their financial advisors before investing. Grey market premium is only an indicator and should not be solely relied upon.
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