For investors, it can be quite challenging to decide if the Canara HSBC Life IPO is a good investment or not. If you are unsure and still thinking about whether to apply or skip this IPO, don’t worry. In this article, we present the top key factors and a detailed review of the Canara HSBC Life IPO. This will help you analyze the strengths, risks, and financial details of the Canara HSBC Life IPO, making your investment decision better.
About Company
Founded in 2007, Canara HSBC Life is one of the growing private life insurance companies in India, promoted by Canara Bank and HSBC Insurance (Asia-Pacific) Holdings Limited. The Canara HSBC Life is involved in providing a wide range of life insurance products for individuals and groups, including savings, term plans, retirement solutions, group protection plans, endowment plans, and the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
As of now, the company’s portfolio consists of 20 individual products, 7 group products, and 2 rider options, along with PMJJBY policies. What makes this company unique is its product offers protection, guaranteed income, and market-linked growth, with flexible payouts, investment options, and customization features. The main reason behind strong business growth is through the bancassurance partnerships with its promoters. Multi-channel distribution network with PAN-India presence is one of the major strengths of the company.
Strengths
- Canara HSBC Life is one of the most trusted parents and a well-known brand allows to attract more customers easily.
- The company offers a wide distribution network across India allows them to reach customers through many channels.
- The company has little to no debt remaining.
- The company has consistently paid a strong dividend of 109%.
- Canara HSBC Life is involved in providing a wide range of products focused on customer needs.
Weaknesses
- The company operates under strict rules, meaning being unable to follow the rules can badly affect the business, leading to paying heavy penalties.
- They uses the logos of Canara Bank and HSBC under license agreements. If these agreements end or does not get renew on good terms can badly affect the business and finances.
- In the past, the company had reported a negative cash flow, if this happen again it can negatively impact the growth plans and financial health.
- Over the past 3 years, the company has recorded a modest average return on equity of 5.38%.
Canara HSBC Life IPO Review
| Reviewer | Recommendation |
| IPO Watch | May Apply |
| Capital Market | May Apply |
| DRChoksey FinServ | |
| Emkay Global | |
| Hem Securities | |
| IDBI Capital | |
| Marwadi Shares | |
| Nirmal Bang | |
| SBICAP Securities | |
| Sharekhan | |
| SMC Global | |
| Sushil Finance | |
| Swastika Investmart | |
| Ventura Securities | |
| Geojit | |
| Reliance Securities | |
| BP Wealth | |
| ICICIdirect | |
| Choice Broking |
Canara HSBC Life IPO Details
| IPO Open Date: | October 10, 2025 |
| IPO Close Date: | October 14, 2025 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹100 to ₹140 Per Share |
| Issue Size: | ₹2,517.50 Crores |
| Offer-for-Sale | Approx 23,75,00,000 Equity Shares |
| Registrar | Kfin Technologies Ltd. |
| IPO Lead Managers | SBI Capital Markets Ltd. BNP Paribas HSBC Securities & Capital Markets (India) Pvt.Ltd. JM Financial Ltd. Motilal Oswal Investment Advisors Ltd. |
| Basis of Allotment | October 15, 2025 |
| IPO Listing Date: | October 17, 2025 |
| Listing | BSE, NSE |
Financial Performance Trend Details
| Particulars | 30 Jun 2025 | 31 Mar 2025 | 31 Mar 2024 |
| Total Income | ₹42.35 Crores | ₹234.01 Crores | ₹240.88 Crores |
| EBITDA | ₹31.28 Crores | ₹149.91 Crores | ₹146.56 Crores |
| Profit after Tax (PAT) | ₹23.41 Crores | ₹116.98 Crores | ₹113.32 Crores |
| Net Worth | ₹1,540.28 Crores | ₹1,516.86 Crores | ₹1,418.88 Crores |
| Reserves and Surplus | ₹590.28 Crores | ₹566.86 Crores | ₹468.88 Crores |
| Total Borrowings | – | – | – |
Peer Comparison with the Company
| Name of the Company | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | RoNW (%) | NAV per Equity Share (₹) |
| Canara HSBC Life Limited | ₹10 | [●] | ₹1.23 | 7.97% | ₹15.97 |
| SBI Life Insurance Company Limited | ₹10 | 74.16x | ₹24.09 | 15.13% | ₹169.49 |
| HDFC Life Insurance Company Limited | ₹10 | 90.27x | ₹8.41 | 11.75% | ₹75.03 |
| ICICI Prudential Life Insurance Company Limited | ₹10 | 73.66x | ₹8.21 | 10.34% | ₹82.57 |
Promoters & Track Records, if any
- Canara Bank is one of the promoters of the company, holding 484,500,000 equity shares representing 51% of pre-offer paid-up Equity Share capital in the company.
- HSBC Insurance (AsiaPacific) Holdings Limited is one of the promoters of the company holds 247,000,000 equity shares, representing 26% of preOffer paid-up Equity share capital in the company.
Information on Industry’s P/E Ratio
The company Canara HSBC Life IPO did not show the P/E ratio in the RHP. However, let’s check out the Life Insurance industry’s P/E ratio to understand it more.
The P/E ratio ranged from a low of 73.66 to a high of 90.27, with an average of 79.37.
Object of the IPO
- The proceed raised from the fresh issue will be used to carry out Selling Shareholders plan to sell up to 237.5 million equity shares of ₹10 each, raising up to ₹[●] million.
- Some funds will be used to achieve the advantage of having the shares listed on the stock exchanges.
Canara HSBC Life IPO – Should You Apply or Not?
Canara HSBC Life comes with a strong brand association, Diverse Product Portfolio, Experienced Management, and Pan-India Presence to drive growth potential in the life insurance sector. However, Regulatory Risks, Dependency on Bancassurance Partners, past negative cash flow and market volatility are some of the major concerns of the company.
Short-term investors can consider apply for the IPO for listing gains after evaluating GMP trends and market sentiment. Whereas Long-term investors must analyze the risks, strength and overall performance before subscribing.
Please note:
Investors are advised to make their own decisions and apply entirely at their own risk. This article is written using information from the company’s RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
