Canara HSBC Life Insurance files for IPO; Canara Bank, PNB to sell stakes

India's Canara HSBC Life Insurance Company has filed for an initial public offering, draft papers showed on Tuesday, with its existing shareholders looking to sell their stake.

Canara HSBC Life Insurance Company is a joint venture promoted by India's state-owned Canara Bank, which owns a 51 per cent stake, and HSBC Group's HSBC Insurance (Asia Pacific) Holdings, which holds 26 per cent.

The insurance firm, which manages more than ₹40,000 crore ($4.7 billion) in assets, did not detail the size or timing of the IPO but said it will not issue fresh shares.

Canara Bank will sell up to 137.75 million shares via the listing, according to the draft papers, while HSBC Insurance (Asia-Pacific) Holdings will sell up to 4.75 million shares.

Punjab National Bank (PNBK.NS), the company's only other shareholder holding the remaining 23 per cent stake, plans to sell up to 95 million shares.

The listing comes at a time when rising global market volatility, driven by flip-flops by the US on tariffs, is forcing companies to recalibrate IPO ambitions to avoid weak demand or failed listings.

India was the world's second-largest market by IPO proceeds in 2024. However, listings are down nearly 15 per cent this year, data compiled by LSEG showed.

Canara HSBC Life Insurance Company reported a profit after tax of ₹113 crore in fiscal year ended March 2024, 24.3 per cent higher than the year earlier, its draft prospectus showed. Revenue, however, was marginally lower by 1 per cent over the same period. It is yet to report results for fiscal 2025.

This is the second IPO by a Canara Bank-backed company in recent times, following last week's filing by Canara Robeco Asset Management Company.