Canara HSBC Life Insurance Company Limited has filed preliminary documents with capital markets regulator Sebi to launch its initial public offering (IPO). This comes days after Canara Robeco Asset Management Company filed its draft IPO documents with the Securities and Exchange Board of India (SEBI).Like Canara Robeco AMC, Canara HSBC Life Insurance Company’s IPO is a full offer for sale (OFS) of 23.75 crore equity shares of promoters and investors, according to a draft red herring prospectus (DRHP) filed on Monday.

Under the OFS, Canara Bank will sell 13.77 crore equity shares, HSBC Insurance (Asia-Pacific) Holdings Ltd will sell 4.75 lakh shares and Punjab National Bank plans to sell 9.5 crore equity shares. Since it is OFS, the company receives no proceeds from the public issue.

Canara HSBC Life Insurance Company is a joint venture promoted by Canara Bank, which holds a 51 per cent stake, and HSBC Insurance (Asia Pacific) Holdings of the HSBC Group, which holds a 26 per cent stake. Established in 2007, Canara HSBC Life Insurance Company has emerged as a bank-led private player in the Indian life insurance sector.

The company has submitted the draft document at a time when the IPO market is experiencing a slowdown due to volatility in the equity market.

SBI Capital Markets Ltd, JM Financial Ltd, HSBC Securities, BNP Paribas, and Capital Markets (India) Pvt Ltd, and Motilal Oswal Investment Advisors Ltd are the lead managers running the books for the issue.

In December 2024, Canara Bank announced that it had received the Reserve Bank’s approval for the bank’s proposal to sell its stake in life insurance and mutual fund ventures.

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(With Inputs From PTI)