The Canara HSBC Life Insurance IPO has entered its second day of subscription, and investors are keeping a close eye on the subscription trends, grey market premium (GMP), and key IPO details. This IPO, one of the most anticipated offerings in India’s insurance sector in 2025, has already attracted attention from retail and institutional investors alike.
1. IPO Overview
Price Band: ₹100 – ₹106 per share
Issue Size: ₹2,517.5 crore (23.75 crore shares offered via Offer for Sale)
Lot Size: 140 shares (Minimum investment at upper price band: ₹14,840)
Offer Structure: 50% QIB, 35% Retail, 15% Non-Institutional Investors
Employee Discount: ₹10 per share
Listing Date: October 17, 2025
Lead Managers: BofA Securities, ICICI Securities, HSBC Securities, JM Financial, SBI Capital Markets
The IPO is a joint venture between Canara Bank and HSBC Insurance (Asia Pacific), backed by a strong brand and a history of steady financial performance.
2. Day Two Subscription Status
As of October 13, 2025, the IPO subscription numbers are as follows:
Overall Subscription: 0.13 times
Retail Investors: 0.26 times subscribed
Qualified Institutional Buyers (QIBs): Yet to subscribe
Non-Institutional Investors (NIIs): Yet to subscribe
The IPO remains open for subscription until October 14, 2025, giving investors one more day to participate.
3. Grey Market Premium (GMP)
The grey market premium (GMP) provides an early indication of listing sentiment:
Current GMP: ₹2 per share
Implied Listing Price: ₹108 (₹106 issue price + ₹2 GMP)
The modest GMP suggests limited short-term listing gains, indicating a cautious approach from early investors.
4. Pros & Cons of Investing
Pros:
Strong Institutional Backing: ₹750 crore raised from 33 anchor investors, including ICICI Prudential and HDFC Mutual Fund.
Reputable Brand: Canara HSBC is a trusted name in the insurance sector.
Steady Financials: Consistent profit growth and a strong solvency margin.
Cons:
Modest GMP: Indicates limited listing gains.
Offer for Sale (OFS) Only: No fresh capital is raised; existing shareholders are selling stakes.
Sector Challenges: Relatively low Value of New Business (VNB) margins compared to peers.
5. Key Takeaways
The Canara HSBC Life Insurance IPO offers a stable investment opportunity for long-term investors due to its strong brand and institutional support. However, the modest GMP and OFS structure suggest that those seeking immediate listing gains may need to approach cautiously.
Important Dates:
Subscription Close: October 14, 2025
Listing Date: October 17, 2025
Investors should evaluate long-term potential versus short-term gains before subscribing to this IPO.
6. Final Thoughts
The Canara HSBC Life Insurance IPO represents one of the key investment opportunities in the Indian insurance sector this year. With strong backing, steady financials, and a trusted brand name, it appeals to investors focused on long-term growth.
However, retail investors seeking quick listing profits should temper expectations, given the modest GMP on day two.
FAQs:
1. When does the Canara HSBC Life Insurance IPO close?
The IPO closes on October 14, 2025.
2. What is the subscription status on day two?
As of October 13, 2025, the IPO is 0.13 times subscribed overall, with retail investors at 0.26 times.
3. What is the current Grey Market Premium (GMP)?
The GMP is ₹2 per share, implying a listing price of approximately ₹108.
4. What is the issue size and price band of the IPO?
Issue Size: ₹2,517.5 crore
Price Band: ₹100 to ₹106 per share
Lot Size: 140 shares
5. Should investors subscribe to this IPO?
Long-term investors may benefit from the strong brand and institutional backing, while those seeking short-term listing gains should consider the modest GMP and OFS structure.
Published on : 13th October
Published by : SMITA
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