Canara HSBC Life IPO opens Oct 10: Bid or skip? Here's what experts suggest

Canara HSBC Life Insurance IPO: Canara HSBC Life Insurance Company (CHLICL) is set to launch its initial public offering (IPO) on Friday, October 10, 2025. The company aims to raise ₹2,517.5 crore from its maiden public issue. The mainline offering comprises an offer for sale of 237.5 million equity shares. There is no fresh issue component.

 

Canara Bank and HSBC Insurance (Asia-Pacific) Holdings are the promoter selling shareholders. Punjab National Bank is the investor selling shareholder. Canara HSBC Life Insurance is jointly promoted by Canara Bank and HSBC Insurance (Asia-Pacific) Holdings.

 

The company has reserved not more than 50 per cent of the issue for Qualified Institutional Buyers (QIBs), not less than 15 per cent for Non-Institutional Investors (NIIs), and not less than 35 per cent for retail investors.

Canara HSBC Life Insurance IPO GMP

On Thursday, October 9, 2025, the unlisted shares of Canara HSBC Life were trading at ₹116, up ₹10 or 9.5 per cent compared to the issue price of ₹106 per share, according to sources tracking unofficial markets.

Canara HSBC Life Insurance IPO: Here's what the experts say

According to SBI Securities, Canara HSBC Life Insurance is a well-positioned life insurer leveraging its strong promoter lineage, deep bancassurance network, and balanced product mix to sustain growth momentum. Its growing contribution from bancassurance partners, improving persistency, and consistent premium growth provide visibility for continued profitability, the brokerage said. 

 

At the upper price band, Canara HSBC Life Insurance is valued at a Q1FY26 price-to-embedded value (P/EV) multiple of 1.6 times. The brokerage expects life insurance premiums for bank-led players to grow at a CAGR of around 22 to 25 per cent between FY25 and FY28, reaching ₹5.4–5.7 trillion, which could support CHLICL’s growth prospects amid strong sector tailwinds, according to SBI Securities.

 

Analysts at Kunvarji Wealth Solutions recommend subscribing to the issue with a long-term perspective, citing the company's strong parentage of Canara Bank and HSBC, and solid fundamentals, including growing VNB and a consistently high claim settlement ratio. The company's diverse product mix and multi-channel distribution network support sustained growth, the brokerage said.

Here are the key details of Canara HSBC Life Insurance IPO:

The three-day subscription window to bid for the Canara HSBC IPO will close on Tuesday, October 14, 2025. The allotment of shares is expected to be finalised on Wednesday, October 15, 2025. The successful allottees will receive the company's shares in their respective demat accounts on Thursday, October 16. 

 

Shares of Canara HSBC Life will make their debut on the exchanges, NSE and BSE, tentatively on Friday, October 17, 2025. 

 

The company has set the price band in the range of ₹100 to ₹106, with a lot size of 140 shares. A retail investor would require a minimum investment of ₹14,840 to bid for at least one lot and in multiples thereafter.

 

Kfin Technologies is the registrar for the issue. SBI Capital Markets, BNP Paribas, HSBC Securities, Capital Markets (India), JM Financial and Motilal Oswal Investors Advisors are the book-running lead managers.  

 

According to the red herring prospectus (RHP), the company will not receive any fresh funds from the issue, and existing shareholders will sell their stake through the offer.